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Living the Dream!
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I'm the owner & contractor for my Remodeling business and have no employees. I started the business almost 8 years ago, and have never missed any of my payments to any of my suppliers or subcontractors. So, I decide this past year to purchase a newer used truck for my company. I currently use my truck to pull my fully equiped trailer to and from my jobs. I have found that since I'm self-employed I'm subject to higher qualification standards when it comes to getting a loan, and also higher interest rates. Has anyone else experienced this, and have you found anyway around it?
 

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Are you sure the higher interest rates aren't just because of your credit score?

Regardless for simple stuff like auto loans list yourself as an employee of your company. I've never been questioned. I have a W2, that's all they want.
 

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Contractor
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maybe it depends on how your 'company' is setup-are you setup as a sole prop? If you're a corporation (getting W-2's)...you're really not self employed...correct?
 

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I'm guessing that it has to do with the industry that I'm in more than anything.
I've never heard of that having anything to do with it. All they care about is your income, your debt and how long you have been doing it.

With an 812 credit rating, unless things have changed dramatically for auto loans it should only come down to your debt, your income and how long you've been doing it in regard to your job.
 

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Is your loan with the same bank you do your business checking with, and is your average daily balance < $5k ?

If your average daily bal was $25 - $30 K you would have gotten their best rates.

What did you find when you shopped around ? With a credit score like that you qualify for the best rate, maybe +1%. But your home bank may have looked at it different like I said.

On something like that its an opportunity to go up the street to the community bank and inquire about the biz checking and the loan if you move your biz there ? They may have given you a variable rate open line of credit for your truck loan as well as other uses as well as being put into commercial loan accounts.

You can always take that back to your bank and see what happens. If your not under water with your current loan, you can still check out the other bank to refinance.
 

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It is probably because they don't consider 8 years as a long enough track record yet. If you are buying the truck through a dealership let them shop around for loan rates for you and see what they come up with.
When I bought my new truck in Sept. the dealership found a rate cheaper than what I had found. I didn't even have to "apply" for the loan. I gave the salesman my SS# and he said he found a rate that was almost 1% cheaper. I told him I would come in to fill out the application and he said don't bother you've already been approved. He told that with the combination of high downpayment and high credit score they gave the approval instantly.
 
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