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What is Automotive Business Financing

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Posted: 8/12/11 04:30 PM
Contributed By: Sandeep Bansal FRIEND HIM ON Twitter | LinkedIn | Facebook
Automotive business financing can be considered for many small businesses and simply means that a business can get loan funds for some form of business vehicle. Typically speaking, the business owner would need to secure a loan for the purchase of the new vehicle or vehicles by providing the title as security, while dealing with a fixed monthly payment over a fixed number of payments. As a small business owner, you should have a good credit score to secure this type of funding.

The documentation for such loans is cumbersome and the financer holds the title of the vehicle as a surety. Additionally, this ties you to a fixed monthly payment until the loan is paid up in full.

There are many businesses that may want to get loan thru traditional options. Typical scenarios in which the business owner may need to consider automotive business financing would include for instance, the local florist who can't be as successful as the business could be by having only one vehicle but what if they don't qualify for this type of funding?

A loan not based on your credit
The cash advance can be taken out on the basis of future credit card receipts. Also, the application process is much quicker than having to deal with a bank or typical auto funding company, and there is no application fee or any fees at all in order to be approved. The business can also get the funds they need within 10 days, and with much less paperwork than these other companies as well.

Pay per your credit card sales
When you decided to go in for this type of auto business financing, you dont have to worry about the monthly payment Payments are based on credit card sales for the month, so if sales are down for a month then their payment will be reflected by that. Your repayment is fixed as a percentage of your monthly credit card sales. In net effect, this means that for the lean months, your repayment is also reduced by equal proportion.

Hassle free loan processing
Applying for a Business Cash advance to fund your business vehicle(s) is as easy as it gets. You receive a quote within 24 hours, and the only criteria to qualify is a minimum one year history of business, with just over $2500 in monthly credit card sales. You get an approval within 24 hours and can get funds in your bank account as early as 10 days.

Any funding amount, not dependent on your financials
The funding can be as low as $2500 and as high as $600,000 - It all depends on your monthly credit card sales and future estimated sales volumes.

Other usage for funds from Business cash advance
The best part about a business cash advance is that you do not necessarily have to use the entire funds available for buying vehicles only. You are free to use the funds for any use as long as it is a genuine business requirement. You can use it for upgrade / overhaul of your fleet, other working capital needs, payroll processing or even to advertise your business to grow your sales.

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