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Halton Car Loan as an Entrepreneur: How the Process is Different

Halton Car Loan as an Entrepreneur: How the Process is Different

Those in Ontario who want to secure a Halton car loan as an entrepreneur are in the right spot. As a business owner, there are unique challenges that you will face when trying to get a loan in Ontario or any other part of Canada.

 

Do you have a stable cash flow?

 

The companies that offer car loans focus on two things, how much money you are bringing in on a consistent basis and how responsible you are with your financial commitments.

 

As an entrepreneur, your cash flow may fluctuate from month to month, especially if you are in a seasonal business or just starting out.

 

Prospective lenders will want to determine what is your average monthly take-home income.

 

If you were a traditional 9-5 worker, your salary slip would be sufficient, but entrepreneurs have to furnish additional information.

 

The lenders will need to see your bank statements for the last year and your income tax notice of assessments for the last two years.

 

Covid has caused tremendous financial hardship for Canadians from coast, to coast, to coast. By having access to these income documents, the lenders can determine what is the maximum car loan you can afford.

 

What is your credit score?

 

If you have sufficient income to qualify for a car loan in Halton, the next thing lenders are going to look at is your credit score.

 

The average credit score in Canada is in the 660 range; if your credit score is 720 or higher, you would be eligible for prime interest rates.

 

As a practice, you should keep track of your credit score, so there are no surprises whenever you do need credit facilities.

 

Since most entrepreneurs use their personal credit cards to cover business expenses, your credit score may be lower than average.

 

Make it a priority to reduce the total amount of debt you are carrying; this will help you save money on interest and boost your credit score.

 

Not all car loan providers are equipped to underwrite entrepreneurs

 

Even if you have good credit and a stable income, as an entrepreneur, there are lenders who are not equipped to underwrite your loan.

 

These lenders focus primarily on the Canadians who work a traditional job that has predictable income and not much risk. You will need professional help if you want to access lenders that can give you the best possible terms.

 

How to secure the most competitive car loan terms in Halton

 

As a business owner, your best option is to ask your local car dealership for help.

 

The dealership would have first-hand knowledge of which lenders in Canada specialize in providing car loans to business owners. The dealership would also know how to negotiate the most competitive terms on your behalf.

 

The dealership also has credit experts who are there to show you what steps to take if you want to optimize your credit score.

 

You need to contact your local dealership and find out what action items you need to address so you can move forward and buy a new car.

 

We’d love to help you find a Halton car loan as an entrepreneur. Simply fill in the form below and we’ll get back to you ASAP or see our selection of used cars at our Burlington dealership. 

 

Thanks for reading. Be sure to connect with us on Facebook, Twitter, Instagram, or LinkedIn to stay up to date on our latest great articles! 

 

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    Categories: Auto Loan

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