While most interested prospects have knowledge about applying for a credit card, LOC, vehicle loan or a home loan, some of them might be unaware of the difference when applying for commercial vehicle or equipment financing. Here we are exploring the differences and the common point between commercial vehicle financing and private lending. One should have ample knowledge about the same before plunging into the same.
If you are looking to buy a commercial vehicle, call us at CIK Capital to where we will help your business to find the best financing. Take advantage of our experience and knowledge.
Commercial Vehicle Financing and Personal Lending
Collateral and credit checks are one of the most crucial similarities between any kind of financing and loans. Before giving the business loan, a credit check is done on the concerned business and owner/s. These personal checks are done to know if the business or individuals they are giving a loan to are reliable or not. If your credit history is bad (unpaid bills, loans or credit cards), getting a financing becomes difficult. On the other hand, having a good credit history can boost your chances to get a loan. At CIK Capital, we specialize in giving loans even on bad credit. Don’t think that you will have to end up paying high interest. We provide affordable commercial vehicle loans in the GTA area.
Collateral provides the lender with the cushion to fall back to if the loan is defaulted on and more importantly it also represents the fact that company has more assets, inculcating trust among lenders. In case of collateral is not enough, the lenders might ask owners to put their personal assets as collateral. Though the collateral need is subjective, many loans do not require collateral.
Difference Between Commercial Vehicle Financing and Personal Loans
We have listed here few differences between them. The most important difference is the interest rates. Personal loans are given on higher interest rate and for shorter durations, especially for business loans. These situations are more common in case of bad credit history or less collateral. Though, as the business grows the rates might drop. But, it is all the guess-work.
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Contact CIK Capital to get commercial vehicle financing Ontario, Manitoba and Alberta.