It is not always easy for traders when it comes to granting a loan. Banks are particularly critical of small companies and it is checked very carefully whether a loan can be serviced by the borrower after the payment has been made and whether enough sales are being made to pay the monthly installments over a long period of time. For this reason alone, loans for traders are treated separately by the banks. So also with a car loan for traders.
Private or commercial?
With a car loan for traders, one has to distinguish first whether the vehicle to be financed should be used privately or commercially. Even a trader has a private life, which sometimes requires a vehicle. So if he is looking for a suitable vehicle, the bank will be the first to be interested.
If the vehicle is mainly used for private purposes, conventional car financing can take place via the bank or the car dealership. It would be advantageous to involve a second borrower who does not derive his income from a commercial activity. The banks are looking for collateral – even for private use.
However, if the vehicle is used exclusively for commercial purposes, this must be stated. With a car loan for traders, the lender will ask for documents regarding the creditworthiness, the business situation and the future prospects of the trade. Tax assessments, detailed documents from the tax advisor and information about the type of company will have to be given.
Finance your vehicle
The lender will examine very carefully the extent to which collateral must be offered. But the greater effort is also worthwhile if you then get the required vehicle financed.
The quickest way to get financing for a car as a trader is from the bank, which also runs the business account. The bank knows the customs of the trader and can best express their trust. If the trust is given and the payment behavior is good, the bank can offer a loan with low interest rates. An interest rate of 3% is already possible here.
As a trader, you can also consider whether you want to lease the car. This type of financing is also available at any time and can be used by almost any self-employed person.