Leasing for new companies
Today, a car is an integral part of doing business. Choose the most favorable way to finance your car purchase, regardless of the stage at which your company is located. You need a loan to buy a car or apply for leasing for new companies – you can do it quickly and effectively with us.
It is a natural need of every company to have a car fleet – be it modest, consisting of one, up to two cars, as well as the entire parking lot of company vehicles, making hundreds of kilometers every day. If we do not have enough funds to buy a company car, we usually think about a loan that will allow us to finance this goal. Another option is leasing the car – this is a procedure often used by companies. This solution has many advantages: it not only reduces costs, but also is less time-consuming and requires much less formalities.
In the case of a special-purpose loan for the purchase of a means of transport, the owner of the company must take into account the need to provide more extensive documentation, as well as incurring the cost of the obligation, primarily in the form of accrued interest and commissions. In addition, he is obliged to insure the subject of the loan, i.e. to conclude a civil liability insurance policy with the insurer of his choice.
If an entrepreneur decides to buy a company car and wants to finance the purchase with a proper loan, at the beginning he should think about which vehicle he is interested in – passenger or truck, used or new, premium or economy class? The type and size of the loan as well as the repayment conditions depend on the type of car.
What is the difference between leasing and car loan?
When buying a car, we can choose between two options: between car loan and leasing. What is the difference between these two solutions and which one really is more profitable for the entrepreneur? First of all, a car loan is a special-purpose loan, and banks or other financial institutions that grant car loans usually cover 100% of the vehicle price. It should also be remembered that the car loan does not only apply to cars but also to other motor vehicles. The loan interest rate is set due to several factors, such as the type of vehicle, whether it is used or new, the loan period, whether the interest rate is variable or fixed, and the currency in which the loan is taken. When choosing a car loan, there are two possibilities: one of them is the need to submit income statements and payment of own contribution, the other provides us to take the loan without any formalities. Nevertheless, in each of these situations, financial institutions secure themselves against the inability to repay the loan. There are several types of loan collateral, including: registration kit, transfer of ownership, vehicle card deposit and assignment of rights from the AC policy.
Importantly, a car loan is usually a cheaper option than a working capital loan for any purpose. In the case of an intentional commitment, you can count on an interest rate of 5%, while with revolving credit it is already 8-10%, which is mainly due to the type of collateral. Usually it happens that the bank granting the car loan is entered in the proof as a co-owner of the vehicle until it is repaid in full. This means, therefore, that for the price of a cheaper loan, the business owner must take into account any possible difficulties in the freedom to dispose of the vehicle. On the other hand, working capital loan is a more expensive solution, but it gives more freedom in managing borrowed funds.
As for leasing, in general, it is the transfer of use rights to a specific vehicle, whose lessor is the legal owner, from the lessor to the lessee who is obliged to pay a fee, i.e. simply leasing installments. This solution is easiest to compare to the lease or rental of a given vehicle. The leasing costs are covered from the current revenues of the company which benefits from the use of the equipment. Leasing is divided into financial (i.e. capital) and operational (current). Finance leases from operating leases is different to that in the first life usually lasts the same as the amortization period and the object it is possible to conclude a buyout clause; and in the latter, the life of the item is usually shorter than the period of total consumption and it cannot contain a redemption clause.
Who can apply for a car loan for companies?
Many entrepreneurs who run a single business simply use their private cars. However, as your business grows, you should think about a vehicle designed exclusively to fulfill your professional responsibilities. A loan for the purchase of a car can be taken both by a natural person who has a registered business activity and by an entrepreneur as part of their business – it does not matter. It is important that the financing obtained is intended for the purchase of a company car – then the vehicle is recognized as a company asset, and expenses and fees associated with it can be recognized as tax deductible costs.
Car loan for a new company – is it possible to get one?
Many new companies just starting out need their own business vehicle. The company car is particularly important for activities based on mobile work. Even with a short experience, you can apply for a car loan for a new company. The final amount of the loan granted depends on the individual situation of the borrower. Nevertheless, a car loan for a new company may be a bit more liberal when it comes to the scope of documents required for analysis. This is due to the lack of a long financial history of the company. Startups often cannot provide documents such as KPiR and other activity related certificates. Fortunately, despite this, there is a suitable solution for them and even a novice entrepreneur can apply for a car loan for a new company, which greatly facilitates the start of his business path.
Leasing and car loan in Instant Care Bank
Are you interested in leasing or car loan for companies? Contact us! A loan broker will answer all your questions, search for an optimally matched offer, help in completing the application and complete formalities, as well as provide substantive support during the loan period. Thanks to many years of experience, Beau Geste Finanse loan brokers are able to negotiate loan terms not available to other customers. We work closely with representatives of banks and financial institutions, creating a database of trustworthy employees and thus minimizing the risk of a negative decision. Feel free to contact us!