Running a small business can be very costly. Sometimes, it may require some extra equipment in order for you to run your business effectively. This can include purchasing computers, registers, chairs, or even vehicles. Whatever your small business needs, you should first make sure you have the funds available to do it all. When it comes to using company vehicles, you can acquire vehicles using auto financing.
You can finance your company vehicles using your business name. It is one of the great perks of gaining business credit. Here are some other awesome perks of auto financing using your business credit.
Auto Financing: Perks of Financing Your Car Using Business Credit
Financing a vehicle for your small business can certainly bring up some great perks. Perks for fuel and liability protection, among other things. Below are some of the perks of auto financing your car using business credit.
Build Credit for Your Business Name
In order to purchase equipment for your small business, you will need cash on hand. If you are not in a position to purchase your business necessities using cash, credit can be sufficient. If you don’t have any business credit built up yet, it’s important to start building credit under the business name. As a small business, your business name can make a huge difference for you. Especially when it comes to auto financing using your business credit.
You can build business credit in many ways, including:
- open a business bank account
- get a business phone line
- register with Dun & Bradstreet to get a D-U-N-S number
- apply for a business credit card
- work with vendors/suppliers that report payments
Make sure that you have your EIN (employee identification number), this could help you get your business going. When you do get financing for a company vehicle, make your payments early if possible. This can really help build that business credit for your small company.
It’s important to make sure you make payments on time. That way when it’s reported to the 3 major credit bureaus, there are only good marks on your credit.
A great way to keep track of your business credit is by following Nav. It can help you really manage your business credit. Another plus is to keep track of your personal credit while your business credit is building. You don’t want to have negative marks on your personal credit, especially while building your business.
Another great perk of using your business credit for auto financing is protection from liability. In order to really have protection from liability is by solely using your business name when financing your company vehicle. This can be done as long as you don’t need a third-party guarantor, which requires using your personal credit and may make you liable.
Using your business name instead of using your own name can allow perks for insurance.
There are a few companies that offer liability insurance for commercial autos, such as:
That’s just to name a few. Make sure to check what type of commercial vehicles would be covered under your commercial auto liability insurance. You would also be able to use the entity as the insured. That way, your business would be liable for anything that may happen during operations of the vehicle, instead of that liability going to you.
Save on Gas by Using Fuel Cards
The best perk is being able to save on gas for your commercial vehicle by using fuel cards. Fuel cards can help you in many ways.
Some of the advantages of using fleet fuel cards include:
- greater control over expenses
- tracking fuel efficiency
- tighter security to stop fraud
- improved cash flow
These are just to name a few. One of the biggest advantages includes saving your business as much money as it can. However, not all fuel cards are the same even with all these great benefits. If you want to compare fuel cards to see what’s best, try using iCompario. It can help you determine the best fuel card for your small business needs.
Tax Deductible Expenses for Business Use
Since your vehicle is being used for business, you can deduct some of these expenses for taxes. The most important thing to know here is that you need to keep detailed reports of your business mileage, as well as other expenses, such as:
- vehicle insurance
- rental or lease payments
There are so many more. Make sure you keep receipts and log every expense you can regarding your vehicle if you want to deduct that come tax time. You will be happy you did. Planning ahead can help you reap the benefit of tax deductions down the line.
Use These Perks – Build Your Business
Building your business can take some time. If you’re ready to start building your business credit, try auto financing a vehicle for your business. Utilize all the great perks of financing a vehicle using your small business credit. By using these perks, you can build your business and secure financing for a worthwhile company vehicle. Turn your business into a thriving small business today and get to where you need to be.
Have you considered utilizing your business credit for financing your small business vehicle?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.