Commercial Vehicle & Business Equipment Loans

As with any other type or business loan, equipment financing companies and other types of lenders that offer vehicle and equipment loans have varying requirements. In general, however, many lenders will give your business a loan but it may come with a higher interest rate and stricter terms on repayment than it would if you had good credit. It's still a good idea to pursue a loan, because building a history of on-time payments can help your business improve its credit score over time.

If you're ready for a low-rate commercial vehicle loan from Space Coast Credit Union, here are the steps to take and the information you will need to provide.

To get started, call our dedicated Business Service Specialists.

Business owners may be tempted to secure a personal loan to purchase or refinance a vehicle for business use, but there are several advantages to getting a business auto loan. Business loans of any type help you separate your personal finances from your business finances, which can be important when filing taxes. In addition, your personal liability may be limited if you have financial difficulties with your business loan.

The period of repayment of a business equipment loan may range from as few as 24 months to 7 years, 10 years, or an even longer term. Every equipment loan—and the financial institutions that offers business loans, such as heavy equipment financing companies—are different, with varying maximum loan amounts, interest rates, down payment requirements, business credit score requirements, and more.

Your ability to secure a commercial vehicle loan for your brand-new business will depend on several factors, including whether you have good personal credit and the amount you want to borrow. In many cases, you may need at least 12 months of business history in order to get a commercial vehicle loan. For information on the business auto loan options that may available to you, SCCU's Business Loan Advisor will be glad to help.

Some business vehicle leases offer advantages such as no down payment requirement and the option to turn in the vehicle to lease a more recent model, but they may also come with mileage limits and other restrictions. You may have the option at the end of the lease to buy the leased vehicle at a price equal to its residual value; a loan, however, results in full ownership of the vehicle when you finish paying the amount loaned.

Buying a commercial vehicle may also allow you to qualify for depreciation tax deductions and once the vehicle loan is fully paid, your business will own the car or truck and it will be a business asset. Whether buying or leasing a vehicle is right for your company will depend on how long you plan to keep the vehicle, how many miles you expect the vehicle to be driven each year, and other factors.

Space Coast Credit Union offers your business flexible terms and great rates on commercial vehicle financing for cars, vans, trucks, and many other types of commercial vehicles. Whether you're looking to finance a vehicle or refinance a vehicle your business already has, we have options for you. SCCU can also help you with financing for equipment, including specialized machinery and heavy equipment.

Our Business Loan Advisors are here to answer your questions about the best commercial vehicle loan or business equipment loan for your business. Be sure to ask about our full range of business loans, including real estate financing, business credit cards and much more.