But remember, this varies by lender and loan type so research your options before applying. Insufficient time in business - While this isn’t a hard and fast rule breaker, lenders typically want to see the business performance/financial records anywhere from six months onwards.This will be reflected in your credit score and history. Too much existing debt - If you’re buried under too much debt from other loans or lines of credit, lenders may be hesitant in extending any additional funds to you.Your business has a large tax debt - While you may not be turned away immediately, it can decrease your chances of approval.They won’t want to put a customer in more debt if they’re already losing money. Your business can’t service the loan - Essentially, does the business have adequate cash flow? If you’re not running at a profit, where is the cash to pay for the new loan? That’s what a lender will be asking.Here are a few common reasons your business car loan may be declined: Nobody likes to be rejected, especially when you’re oh so close to the finish line. Reasons your business car loan application got rejected You may also find some lenders require the vehicle to be used for business purposes only. history, background, experience, personal finances. This tends to be a lengthier process - lenders do a dive deep into the person who is running the business e.g. If your business has been trading for less than one financial year, you may be asked to provide additional documents such as a business plan and cashflow forecasts, as your business would have a limited history of financials/trading. Personal statement of position (required for each business director if there is more than one).Information from ATO portal - shows how much tax debt you owe the government.Individual tax returns for all business directors.Business financial statements - determines whether your business is making enough profit to afford the vehicle (balance sheet, profit and loss statement).Identification - driver’s licence, birth certificate, etc.However, keep in mind these can vary depending on the lender you apply with. When you apply for a business car loan, you’ll be asked for a few documents to ensure you’re eligible. Once approved, the letter of offer will be sent through to the customer.From there, the application will either be approved or rejected. The credit team will conduct a secondary assessment to determine whether the business can service the loan.
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