If you are self-employed or have your own company or corporation, there can be transportation needs or times when the company may require its own vehicles.
Even if you are a sole-trader and your company is a one-man operation, you may still need a van, or other vehicle to carry your tools, or haul materials to and from job sites.
There can be times when it makes sense to buy a car or vehicle in the company or business's name as opposed to having the car in an individual's name.
If it is a vehicle that is strictly for business use, there can be advantages to financing a vehicle in the company's name, and having the owner of the company, or one of the company Directors, to sign as guarantor for the loan.
Many lenders will grant loans to companies for purchases such as a car or van, however, unless the company is well established and has a financial track record of its own, the lender may require someone to guarantee the loan. Again this may be a Director or someone who owns the company, depending on how the company is structured.
Having vehicles in the company name, even if the financing is guaranteed by someone, can have tax advantages and also financial advantages to the company as well.
Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.