People Also Ask:
What Do I Need To Get a Business Loan For a Limousine or Rental Car Company?
Aside from SBA Loans, Wholesaler Business Loans require minimal documentation. If you’re applying for a standard Business Term Loan, Working Capital Loan, or Business Line of Credit, you may only need:
- Driver’s license
- Voided business check
- Bank statements from the past three months
For Equipment Financing, you’ll also need the invoice for the desired piece of equipment. For a Merchant Cash Advance, you’ll also need three months of credit card processing statements. And for Accounts Receivable Factoring, you’ll also need your accounts receivable, accounts receivable aging report, and your debt schedule.
How Do Limousine Companies Get Financing?
Limousine companies can get financing through traditional lenders like banks and alternative business financing marketplaces like United Capital Source. If you’re looking for a significant amount, banks and credit unions carry the cheapest products with the most extended terms. However, these products are challenging to qualify for. You’ll need excellent credit, perfect cash flow, plenty of money in the bank, and collateral. If you can’t meet these requirements, you can still access substantial borrowing amounts through companies like United Capital Source.
Banks and credit unions also prefer to lend more significant amounts. Thus, if you’re just looking to cover vehicle maintenance, payroll, or other operational costs, companies like United Capital Source will be more willing to work with you. The size of your desired amount will not make you any less likely to get approved.
Why Do Limousine And Rental Car Companies Need Financing?
An ongoing struggle for limousine and rental car companies is adapting to modern standards while covering high regular expenses like fuel and insurance. Today’s customers want limousine companies to be equipped with the latest technology. This pertains to the vehicle as well as the customer experience (i.e., booking the limo, tracking the chauffeur’s location). In other words, customers want the same conveniences provided by ride-sharing companies like Uber.
Another ongoing cost is vehicle maintenance. Limousines regularly need new carpeting, seating, bar equipment, or old GPS systems. And when most of your limousines are of the same age and model, there’s a good chance that multiple vehicles will require maintenance or become outdated at the same time.
Also, it’s important to note that many limousine companies are quite small. Many of them have less than ten limousines in their entire fleet. This just shows how difficult it is to grow a limousine company on your own.
Can I Get a Business Loan For a Limousine or Rental Car Company With Bad Credit?
Yes, six of the eight products mentioned above are accessible for borrowers with bad credit. Your rates may be higher, and your terms may be shorter because bad credit makes you more likely to default. However, if you have strong cash flow or can provide collateral, your bad credit may have less of an impact on your rates and terms. We can also customize your terms and payment frequency to ensure that you can make payments while staying current on other bills.
For some products, your credit score is irrelevant. Approval for a Merchant Cash Advance is based on your debit and credit card sales volume. With Accounts Receivable Factoring, approval depends on your customer’s creditworthiness, not your own.
The only products that are not accessible with bad credit are Business Term Loans and SBA Loans. Compared to the other products, these two options carry higher borrowing limits, lower rates, and longer terms. If you have bad credit, you’ll be assigned shorter terms to ensure you repay the loan in full.