Conducting your due diligence in choosing the right lender for a business auto loan is far more important than simply getting the financing for your vehicle. It can impact your finances, loan experience, and your future cash flows. With this in mind, my picks for the best business auto loans include providers that have a combination of competitive rates and terms, flexible underwriting criteria to help you get approved, and a history of providing top-notch customer service.
Best business auto loans at a glance
Smarter Finance USA: Best overall for flexible approval criteria
Smarter Finance USA is my best overall pick for business auto loans because it offers competitive rates and has no hard minimums for credit score or time in business. This makes it a good option if you’re unsure of your ability to get qualified for a loan. This flexibility in criteria is made possible because it’s a business loan broker with a network of nearly 40 lenders. Working with Smarter Finance USA also means you’ll get a loan specialist who will match you with the right lender willing and able to lend to a business with your qualifications.
We spoke with one of its representatives, who mentioned that it can be particularly difficult to get financing if you have a credit score below 600. If you find yourself in this situation, I recommend gathering paperwork to show any strengths of your business, like an increasing trend of income, a large amount of financial reserves, or the ability to handle a large down payment on your auto loan.
Smarter Finance USA specializes in multiple industries, including food services, healthcare practices, heavy equipment leasing, and vendor equipment financing. It can also lend on heavy equipment, such as excavators, cranes, bulldozers, and more.
How to qualify
- Credit score: None, but 600 is recommended
- Vehicle restrictions: Varies; none stated
Rates & terms
- Loan amount: $10,000 to $1 million
- Est. starting interest rate: 10%+
- Loan term: 24 to 60 months
- Payment schedule: Weekly, monthly, seasonal, deferred
- Funding speed: 1 to 4 days
BlueBridge Financial: Best for financing older vehicles
BlueBridge Financial is the best financing option for older vehicles because it has no age restrictions on equipment — a stark contrast to most other lenders that require it to be no more than 5 to 7 years old. Notably, it specializes in equipment financing, as this type of lending makes up a vast majority of its business.
Another standout feature is its ability to offer same-day approvals and funding. It also has an application-only process for loan amounts under $350,000, further speeding up the lending process while ensuring minimal paperwork requirements, making for a quick and easy experience for borrowers.
BlueBridge Financial places a large emphasis on a borrower’s creditworthiness in determining approvals, rates, and terms. It primarily considers the strength of the business owner’s personal and business credit, although in some scenarios, it will also use business bank statements. Some industries that it lends to include agriculture, construction, hospitality, landscaping, restaurants, transportation, and retail.
How to qualify
- Credit score: 610, but can vary by program
- Time in business: None, but 2 years recommended
- Business revenue: Varies
- Down payment: Varies
- Vehicle restrictions: No age restrictions
Rates & terms
- Loan amount: $10,000 to $500,000
- Est. starting interest rate: 5.99% to 25%
- Loan term: 24 to 60 months
- Payment schedule: Varies
- Funding speed: As fast as same day
Lendio: Best for multiple financing options
If you want to get as many financing options as possible, look no further than Lendio. It is a business loan broker with over 75 lenders in its network. And don’t worry if that seems overwhelming, because working with this company means you’ll have a dedicated loan advisor who will do all the legwork in matching you with the right one!
Lendio places a large emphasis on customer service, evidenced by its 4.7-star rating on Trustpilot with over 21,500 reviews. I sifted through these comments and found that reviewers frequently commented on Lendio’s quick response times, good value for money, and ability to meet expectations set forth up front.
In addition to equipment financing, Lendio can also help you get other types of loans. This includes business credit lines, business acquisition loans, commercial mortgages, and much more. In other words, it’s a good company to consider if you want to simplify your financing needs with just one company.
How to qualify
- Credit score: 520
- Time in business: 0 to 12 months
- Business revenue: $50,000+
- Down payment: Varies
- Vehicle restrictions: May vary by lender
Rates & terms
- Loan amount: $5,000 to $5 million
- Est. starting interest rate: 6%+
- Loan term: Up to 10 years
- Payment schedule: Varies
- Funding speed: As fast as same day
National Funding: Best for short-term financing
National Funding is my pick for businesses that expect to pay off their auto loan quickly because it offers a repayment discount of up to 6% on its equipment loans when paid off early. While short-term loans can have higher monthly payments that can negatively impact your cash flow, these can be ideal for businesses that want to minimize interest charges in the long run.
A notable feature of National Funding is its Guaranteed Lowest Payment program. This essentially promises that you’ll get the lowest payment on equipment (which may include vehicles) that’s leased through the company. If you find a lower payment elsewhere, National Funding will pay $1,000 towards qualifying executed leases. Additional terms apply, and you can view the program details for more information.
With that said, National Funding is also known to be able to offer custom payment programs to suit your cash flow needs, such as revenue cycles being seasonal or otherwise cyclical throughout the year. You’ll also get a high level of personalized customer service throughout the lending process, evidenced by the company’s 4.7-star rating on Trustpilot with over 2,000 reviews.
How to qualify
- Credit score: 600+ recommended
- Time in business: 6 months
- Business revenue: $250,000 recommended
- Down payment: Not stated; may vary
- Vehicle restrictions: Varies
Rates & terms
- Loan amount: Up to $150,000
- Est. starting interest rate: Factor rate of 1.11x and up
- Loan term: 24 to 60 months
- Payment schedule: Monthly
- Funding speed: As fast as 24 hours
Bank of America: Best for rate security while shopping for vehicles
If you haven’t found a vehicle yet, but are worried about rates fluctuating, Bank of America is a good option. It lets you lock in a rate for 30 days while you find a vehicle suited for your needs. Once you’ve found a vehicle and received formal loan approval, you’ll receive a check made payable to the seller or dealer.
You can also qualify for additional discounts depending on your relationship with the bank. There are three relationship tiers available with eligibility based on your 3-month combined average daily balance in your deposit accounts with the bank, and you could qualify for an interest rate discount of up to 0.50%. With that being said, Bank of America won’t always be the best fit for everyone, so I recommend you also consider our list of the best banks for small business loans.
With Bank of America, you can purchase nearly any type of vehicle, including cars, vans, light trucks, and commercial vehicles weighing more than 2.5 tons. You’ll also get access to free business credit scores, along with resources to help bolster your company’s cash flow.
How to qualify
- Credit score: 680 recommended
- Time in business: 2 years
- Business revenue: Varies
- Down payment: None
- Vehicle restrictions: $10,000 minimum value, max age of 5 years, and
Rates & terms
- Loan amount: $10,000+
- Est. starting interest rate: 6.04% APR
- Loan term: 48 to 72 months
- Payment schedule: Monthly
- Funding speed: 1 to 5 days
My methodology
In choosing the best business auto loans, I focused on criteria I knew would provide value to business owners, their companies, and their finances. This included factors such as rates and terms, qualification requirements, funding speeds, and customer ratings.
- Rates, fees, and loan terms: I considered the range and competitiveness offered, as these items have a direct impact on affordability and cash flow for a business.
- Qualification requirements: I assessed the flexibility of the qualification requirements, as well as how difficult it would be for most business owners to meet the eligibility criteria.
- Funding speeds: I evaluated how quickly a lender could issue funding once a completed loan application was received, as it’s something that could be critically important for a business that needs funding fast.
- Customer reviews and ratings: Testimonials from former clients were considered in determining whether the lender had a solid reputation in the industry, as well as seeing if there were any trends to highlight any strengths or weaknesses.
How to choose a business auto loan provider
The best business auto loan provider won’t be the same for every company. It can depend on a variety of factors, such as the strength of your credit, finances, and your company’s business model and goals. At a minimum, I recommend considering the following factors before making a final decision on which lender to go with:
✅ Compare costs by getting multiple quotes: Shopping lenders will help ensure you get the best rates and terms available. In doing so, consider how expensive the loan will be. Think about any upfront costs and any long-term expenses of the loan, such as total interest charges you’ll pay during its lifetime. Ideally, your use of the funds will bring you a positive return on investment in relation to your loan costs.
✅ Determine your likelihood of qualifying: If you have borderline credit and finances, you may need to dedicate more time to the loan search. Consider your timeline for when you need money from the loan, and start applying as soon as possible in case you encounter difficulties getting approved.
✅ Think about what factors are most important to you: Lenders each excel at different things, so you’ll need to prioritize what’s most important to you. This could be costs, the ability to have custom payment terms, a lender that has excellent customer service, or one that has a lot of physical branch locations for you to visit.
Frequently asked questions (FAQs)
Can I get a business auto loan as a new company?
Yes, some lenders will issue funding to startups with less than two years history of being in business. However, they will often require proof of compensating factors, such as strong financial reserves or good credit, and you may not qualify for the best advertised rates and terms.
How much of a down payment should I have for a business auto loan?
I recommend having a down payment between 10% and 25%. Larger down payments can help improve your odds of landing a loan approval while also helping you qualify for more favorable rates and terms.
How long does it take to get a business auto loan?
It can take anywhere from one day to five days to get a business auto loan. This can depend on the complexity of your company’s finances and the lender you choose. To streamline the process, you can gather commonly required paperwork referenced in our list of typical business loan requirements.
