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Georgetown Car Loan as an Entrepreneur: How & Where

Georgetown Car Loan as an Entrepreneur: How & Where

Canadian entrepreneurs who want to buy a car unless they are paying cash will need to secure financing.

 

Let’s face it; if an entrepreneur had $40k-$50k, which is the average price for a new car sitting in their bank account, they would allocate that capital to their business.

 

Securing a Georgetown car loan as an entrepreneur will take extra work on your end. That’s what our car loans team can help with.

 

What is your business classification?

 

One of the first things we need to address is how your business is structured.

 

Is it a sole proprietorship, incorporated, or partnership? Each of these has unique benefits and obligations; the most common and simplest business setup is a sole proprietorship. Inside a sole proprietorship, you are solely responsible for any and all debts the business incurs.

 

If your business was incorporated, you would pay yourself a salary like a regular employee, which makes the underwriting process for lenders very easy; they just look at your payslip and, based on that, can determine the maximum loan you can afford.

 

With a sole proprietorship, the lender has to look at all of your financials to try and determine your average monthly pay.

 

As an entrepreneur, your income can fluctuate from month to month, so lenders will ask for your latest income tax notice of assessment and copies of your bank account statements for the last six months.

 

How strong is your credit?

 

Even if your income is verifiable and sufficient, that is just one part of the loan underwriting process.

 

The prospective lender needs to know whether you are responsible for your finances. Most entrepreneurs put their business expenses on their personal credit cards, which is convenient, especially when you are in the start-up phase.

 

Suppose you are carrying a lot of debt. In that case, your credit score will be low, which makes securing a car loan more difficult, especially if you want competitive terms.

 

You should make it a habit to check your credit report at least once a month; there are free apps that you can install which let you track your credit, and they are free to use.

 

If your credit score is in the 600s, you can secure a car loan but aim for 720 to access the most competitive terms.

 

Where to get the best Georgetown car loans for entrepreneurs

 

While you are reading this online, the Internet is not the best place to find a car loan for entrepreneurs.

 

The best source of car loans for entrepreneurs is through a local car dealership. These dealerships have intimate knowledge of how car loan underwriting works, especially when the borrower is self-employed.

 

After the dealership has assessed the unique points of your profile, the dealership will negotiate with the various lenders to secure the most competitive deal.

 

The dealership will also show you its full inventory of vehicles to help you select the one best suited for your situation.

 

Now that you know how to secure an entrepreneur car loan, you should contact the dealerships in your area as soon as possible.

 

We’d love to help you find a Georgetown 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. 

 

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    Categories: Auto Loan

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