 TITLE: Everything You Need to Know About Business Auto Loans CONTENT: What Is a Business Auto Loan?\n-----------------------------\nFor the most part, business auto loans function similarly to consumer auto loans. When you borrow money to purchase a car or truck, the vehicle acts as collateral for the loan. This means that, unlike some other business loans, you may not have to sign a personal guarantee promising you'll pay back the debt with personal assets if your business defaults.\nThese loans also tend to carry lower interest rates than unsecured business loans because the built-in collateral reduces the lender's risk in the transaction.\nLoan terms, however, can vary by lender. For example, while some lenders will allow you to finance up to 100% of the vehicle's sales price, others may require a down payment. You'll work with your lender to figure out loan amounts and restrictions on the age and mileage of the vehicle.\nYou can generally expect a repayment term similar to a consumer auto loan, with many commercial auto lenders offering up to 72 months.\nBecause it's your business borrowing the money, lenders will likely base your loan terms on your business credit history, not your personal credit history. If you haven't yet established a business credit history, you may need to provide a personal guarantee, which can affect your finances and personal credit history if your business defaults on the debt. END