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When find yourself in need of a company car for your LLC or other type of business, how do you know if you are making the right choice when it comes to financing? It’s important to explore your options and speak with an advisor who understands both your financial situation and the details of your business. One popular approach for financing is to use a line of credit. Learn more below about buying a company car for an LLC using a business line of credit to see if it sounds like a good fit for you.

Buying New or Changing Ownership

The first thing to consider when buying a car for an LLC is whether you want to use the personal car you already own or buy a new one altogether. If you choose to use a personally owned vehicle when you first start your business, it will most likely be considered a capital donation. You can also have the company purchase your vehicle from you for its fair market value. This may save the company some money, but buying new means you can choose a car with the exact specifications needed for your company operations.

Requirements for Buying a Company Car for an LLC

To buy a car for your company, the business must be officially registered as an LLC and you will need to have an Employer Identification Number (EIN). Generally, your company will also need to have established a good credit history.

You will need to choose a car that will directly benefit the business, so this is probably not the time to get your dream sports car. Think of the practical uses of the vehicle and the specific characteristics you will need in a company car. For example, if you transport products, you may want to consider a truck, cargo van, or other vehicles with plenty of storage space. However, if the vehicle will be used primarily for commuting between client meetings, a fuel-efficient car is probably a better choice.

Single Car or Fleet

It is also a good idea to consider the number of vehicles needed. If you can sufficiently run your business operations with only one vehicle, great. But in many cases, a fleet of vehicles is needed. Often, you can work directly with manufacturers to get several of the same vehicle for a better price. Just make sure you are aware of the terms and the minimum number of vehicles required.

Financing Options

Once you have determined your company’s needs and chosen the vehicle(s) you wish to purchase, you need to consider financing options. There are several financing options available including business loans, capital loans, and lines of credit.

Make an appointment with a lender or financial advisor who has experience with businesses like yours. Choose someone you trust who will keep you well informed and guide you through the financing process.Sunwise Capital works with small businesses to help them obtain the financing they need to grow and reach their goals.

Business Line of Credit

One popular choice when it comes to buying a company car for an LLC is using a business line of credit. With this type of financing from Sunwise Capital, you can get approved quickly. We use a soft credit pull, which will not affect your personal credit, but you will need to have a good credit history. You will be approved for a total possible amount and then will be required to make payments on what you actually use, similar to a credit card.

Sunwise Capital

Sunwise Capital was created by former small business owners and is focused on providing assistance to current business owners. We make it our goal to provide you with all the tools you need for success and to help you make smart financing choices. We do not require you to fill out mountains of paperwork like other lenders. Plus, we can customize loan options to meet your individual needs.

Contact Sunwise Capital today to speak with one of our loan experts and get more information about financing options for buying a company car for an LLC.

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