Car loan for a new company, leasing options for a company car

Leasing for new companies

Leasing for new companies

Today, a car is an integral part of doing business. Choose the most favorable way to finance your car purchase, regardless of the stage at which your company is located. You need a loan to buy a car or apply for leasing for new companies – you can do it quickly and effectively with us.

It is a natural need of every company to have a car fleet – be it modest, consisting of one, up to two cars, as well as the entire parking lot of company vehicles, making hundreds of kilometers every day. If we do not have enough funds to buy a company car, we usually think about a loan that will allow us to finance this goal. Another option is leasing the car – this is a procedure often used by companies. This solution has many advantages: it not only reduces costs, but also is less time-consuming and requires much less formalities.

In the case of a special-purpose loan for the purchase of a means of transport, the owner of the company must take into account the need to provide more extensive documentation, as well as incurring the cost of the obligation, primarily in the form of accrued interest and commissions. In addition, he is obliged to insure the subject of the loan, i.e. to conclude a civil liability insurance policy with the insurer of his choice.

If an entrepreneur decides to buy a company car and wants to finance the purchase with a proper loan, at the beginning he should think about which vehicle he is interested in – passenger or truck, used or new, premium or economy class? The type and size of the loan as well as the repayment conditions depend on the type of car.

What is the difference between leasing and car loan?

What is the difference between leasing and car loan?

When buying a car, we can choose between two options: between car loan and leasing. What is the difference between these two solutions and which one really is more profitable for the entrepreneur? First of all, a car loan is a special-purpose loan, and banks or other financial institutions that grant car loans usually cover 100% of the vehicle price. It should also be remembered that the car loan does not only apply to cars but also to other motor vehicles. The loan interest rate is set due to several factors, such as the type of vehicle, whether it is used or new, the loan period, whether the interest rate is variable or fixed, and the currency in which the loan is taken. When choosing a car loan, there are two possibilities: one of them is the need to submit income statements and payment of own contribution, the other provides us to take the loan without any formalities. Nevertheless, in each of these situations, financial institutions secure themselves against the inability to repay the loan. There are several types of loan collateral, including: registration kit, transfer of ownership, vehicle card deposit and assignment of rights from the AC policy.

Importantly, a car loan is usually a cheaper option than a working capital loan for any purpose. In the case of an intentional commitment, you can count on an interest rate of 5%, while with revolving credit it is already 8-10%, which is mainly due to the type of collateral. Usually it happens that the bank granting the car loan is entered in the proof as a co-owner of the vehicle until it is repaid in full. This means, therefore, that for the price of a cheaper loan, the business owner must take into account any possible difficulties in the freedom to dispose of the vehicle. On the other hand, working capital loan is a more expensive solution, but it gives more freedom in managing borrowed funds.

As for leasing, in general, it is the transfer of use rights to a specific vehicle, whose lessor is the legal owner, from the lessor to the lessee who is obliged to pay a fee, i.e. simply leasing installments. This solution is easiest to compare to the lease or rental of a given vehicle. The leasing costs are covered from the current revenues of the company which benefits from the use of the equipment. Leasing is divided into financial (i.e. capital) and operational (current). Finance leases from operating leases is different to that in the first life usually lasts the same as the amortization period and the object it is possible to conclude a buyout clause; and in the latter, the life of the item is usually shorter than the period of total consumption and it cannot contain a redemption clause.

Who can apply for a car loan for companies?

Who can apply for a car loan for companies?

Many entrepreneurs who run a single business simply use their private cars. However, as your business grows, you should think about a vehicle designed exclusively to fulfill your professional responsibilities. A loan for the purchase of a car can be taken both by a natural person who has a registered business activity and by an entrepreneur as part of their business – it does not matter. It is important that the financing obtained is intended for the purchase of a company car – then the vehicle is recognized as a company asset, and expenses and fees associated with it can be recognized as tax deductible costs.

Car loan for a new company – is it possible to get one?

Car loan for a new company - is it possible to get one?

Many new companies just starting out need their own business vehicle. The company car is particularly important for activities based on mobile work. Even with a short experience, you can apply for a car loan for a new company. The final amount of the loan granted depends on the individual situation of the borrower. Nevertheless, a car loan for a new company may be a bit more liberal when it comes to the scope of documents required for analysis. This is due to the lack of a long financial history of the company. Startups often cannot provide documents such as KPiR and other activity related certificates. Fortunately, despite this, there is a suitable solution for them and even a novice entrepreneur can apply for a car loan for a new company, which greatly facilitates the start of his business path.

Leasing and car loan in Instant Care Bank

Leasing and car loan in Instant Care Bank

Are you interested in leasing or car loan for companies? Contact us! A loan broker will answer all your questions, search for an optimally matched offer, help in completing the application and complete formalities, as well as provide substantive support during the loan period. Thanks to many years of experience, Beau Geste Finanse loan brokers are able to negotiate loan terms not available to other customers. We work closely with representatives of banks and financial institutions, creating a database of trustworthy employees and thus minimizing the risk of a negative decision. Feel free to contact us!

Instant loan despite bank refusal

The bank refusal of a loan application simply means that a requested financial institution does not approve the desired loan. It does not in any way preclude other credit banks from approving the loan. An instant loan is mostly paid out within two bank working days; credit institutions point out deviations.

Analyze the reason for the rejection

bank

Before consumers apply for an instant loan despite a bank refusal, they analyze the reason for the refusal of the initial credit request. A common reason for a bank refusal is that loan seeker applies to a bank whose published terms and conditions already exclude them as loan customers. Not all financial institutions grant loans, particularly to temporary workers and the self-employed. Many banks also give an indication of why they could not fulfill a loan request.

If your income is too low for the repayment rate to be paid, an extension of the loan term often helps. If bad Schufa information is the cause of the loan refusal, an immediate loan can be obtained through a Swiss financial institution despite the bank refusal. Unlike German direct banks, the federal banks generally refer to loans with a processing time of up to one week as immediate loans.

The waiver of proof of income helps with lending

The waiver of proof of income helps with lending

In many cases, direct banks approve an instant loan without proof of income despite the bank refusal. This is especially true if the income of the loan seeker is made up of various factors. Quite a few financial institutions only count the income from their main job and child benefit, but not secondary earnings and maintenance payments.

In the case of instant loans without proof of salary, dishonest information is, of course, impermissible, but no one can prevent the applicant from adding up all the regular income he has generated and, if the amounts are not paid monthly, forming a monthly average.

Fixed-term contract of employment

Fixed-term contract of employment

Even employees with a fixed-term contract of employment often successfully apply for an instant loan that can be obtained without the presentation of customary bank documents, despite a bank rejection of their first loan application, since the instant lender is not aware of the provisional employment relationship.

The waiver of the submission of the employment contract and proof of income has practical reasons because, in view of the shortened credit processing time, a complete examination of the submitted documents would not be possible anyway.

4 important tips for a car loan

A car is expensive, and it is not always possible to cover the purchase price out of your own savings. Therefore, it is sometimes necessary to think about a car loan. There is a large offer in this regard, but there are also a few things to consider. We have put together four important tips for you so that you can enjoy your new car for many years!

Cheap financing through the dealer

Cheap financing through the dealer

It is often the case that the car dealer works with a bank; large corporations have even founded their own institutes. This means that when you conclude a contract, you also receive the car loan “from a single source”, so to speak. These offers can be cheap – but they don’t have to be. It’s no secret that car dealers have guidelines regarding the cars to be sold. Towards the end of the year, you therefore have the chance to get really cheap loan terms, as the dealer is primarily interested in selling the car. Nevertheless, we expressly point out that a credit comparison is definitely appropriate – read also point 4!

Apply for a car loan now!

the period

the period

It is clear that the monthly rate is lower if you choose a long term of the car loan. However, it must always be weighed up in individual cases how long you should repay. After all, buying is not always about a new car, and if you buy a five-year-old car, you should also adjust the term to the expected lifespan. Or do you still want to pay for a car that you no longer own? It goes without saying that you have to consider in advance whether you can afford a loan at all. There are also many interesting articles on this topic on our site!

Assuring reassured

Assuring reassured

Imagine you take out a loan, drive your new dream car – and suddenly you slide off the road on black ice. In the worst case, the car can no longer be repaired, but the loan still has to be serviced. It is therefore important and sensible to take out at least partial comprehensive insurance and also to think about fully comprehensive insurance. Get a variety of offers, all-round protection may not be as expensive as you fear, and you can get in the car with ease every day.

Compare, compare, compare!

Compare, compare, compare!

NEVER accept the first offer you get for car finance. As I said, the market is big and there are a number of banking institutions that are happy to welcome customers. Therefore, you should definitely compare the credit conditions, the installment amount and the other expenses exactly before the final decision. You don’t have to make a pilgrimage from bank to bank – you can do this comparison conveniently from home on the Internet. You enter some key data – loan amount, age, income situation – and in the next step you get an overview of the current offers of the different banks. This gives you a good basis for making your decision.

Is it better to buy a car on credit or leasing?

 

Please note in advance that there is no clear answer to this question. However, before you dismiss this page in disappointment, be aware that you will have more clarity in your choice after reading this article. For each type of person is suitable different type of financing, which will be tailored to their needs.

The most important concepts

credit saving

While the loan consists of borrowing money for which a person can buy the item and own it, leasing has different rules. With leasing, the car is owned by the seller until the buyer pays all the installments. Leasing is actually based on a lease agreement – the buyer rents the car for the period of payment.

There are two types of leasing – financial and operational.

  • For financial leasing it is assumed that you buy the car at the end of the repayment period. Financial leasing is characterized by a higher first installment, the so-called down payment, which usually amounts to 30% of the vehicle price.
  • Operational leasing, on the other hand, is much more charter than financial leasing. Operating leases are not expected to be purchased at the end of the period, but there is an option. Under operating leases, there is no obligation to pay a down payment.

While in the past the driver could choose between different lengths of leasing (for example, for one year, ie he could have a new car each year), today the most common length of leasing is 3 years. Can’t you decide whether leasing or credit is more convenient for you? Let us now focus on the pros and cons of each form of financing.

Financial advantage

money loan

Although leasing remains in people’s subconscious as the most expensive option, it is not always the case. It is true that in the case of leasing there is often a higher fee for arranging a loan. However, liability insurance and accident insurance are already included in the lease installment. In today’s wide range of financial products, the prices between credit and leasing are not very significant.

Rather, the choice of a suitable financial company plays a role in the question of financial profitability – the differences between the offers of credit and leasing companies can be very significant. For a loan, always find out information about APR, which is literally “annual percentage rate of charge”, ie the amount of loan costs, which includes interest and other costs – such as account maintenance fee.

How much can individual loans vary?

We compared the loan conditions of three random credit firms on the Czech market. Loan of USD 300,000, repayment period of 5 years:

 

  APR Total amount paid
Company 1 4% 330 686 USD
Company 2 6.07% 347 173 USD
Company 3 11.67% 392 154 USD

The table shows that by choosing the cheapest option you can save 61 468 USD. Where to get more comprehensive information about the credit market?

Tip! Our online loan calculator allows you to compare offers across the market and find the cheapest option, allowing you to save tens of thousands of crowns. Find the best loan

Difficulty of obtaining

Loan is more difficult to obtain, while leasing does not have such strict rules. In most cases, leasing is therefore a faster and easier option for financing. This can also be an advantage of traps at the same time. While it is true that they will not check your solvency so closely with a lease, but a thorough click through of your financial capacity can help. In general, lenders do not lend to people who are unable to repay. Therefore, when applying for a loan, you have a better chance that the loan will match your payment options.

The question of ownership

money saving

The loan has one indisputable advantage, which is the fact that the car is owned by you. If you are unable to make a payment, the bank or credit company will be interested in agreeing with you and setting up a repayment schedule, for example. This is quite the opposite of leasing, where the leasing company can terminate your contract if you miss the installment and confiscate the car.

Worries about normal operation

money loan

While for ordinary property you have to worry about a lot of things (paying insurance, service repairs), for leasing these activities are covered by a leasing company. The installment price includes both compulsory and accident insurance. The leasing company also covers most service repairs.

Mileage

While you can drive a half of Europe with your own car, most leasing companies set a mileage ceiling. Usually it is 20 000 kilometers per year. After exceeding this limit, you will not be taken away by your car, but you may increase your leasing payment, or you may pay extra for each kilometer beyond the scope of a single ramp. Leasing companies can charge for example USD 1 – 2 per kilometer, but there are also companies where they pay a fixed amount or even 6 USD for each extra kilometer.

Currently from the market

How are the trends when buying a car now?

  • Interest in operational leasing is growing – approximately 30% of buyers choose this form of financing.
  • People are interested in more expensive used cars. More and more clients prefer more comfort and luxury in a car, and many of them do not hesitate to buy more luxury cars in used car shops.
  • Households are more likely to opt for consumer credit, while operating leases. Operational leasing is an affordable way for companies to buy cars and not to spend money on their purchase.
  • Part of the purchase of a car is the conclusion of appropriate insurance. In 2019, people will spend USD 5607 for MTPL (June 2019). The difference between the cheapest and the most expensive MTPL offer in the same month was 3391 USD.

Mortgages are also available as foreign currency loans

Are you interested in terms of foreign currency mortgages from Lite Lender? Consult with me without obligation.

Today, Lite Lender published a mortgage bank that introduces so-called foreign currency loans. By name, you would guess that these are mainly mortgages for foreigners. You will be surprised, because Lite Lender foreign currency mortgages can easily apply to you. Read this article to learn the rules for getting these loans.

 

What is Lite Lender Foreign Mortgage

save money

Foreign currency mortgage is defined by the Consumer Credit Act No. 257/2016 Coll. and concerns three cases:

  • For example, you want a mortgage for an apartment, but your wage is in a currency other than the crowns, or
  • you will repay an American mortgage in a currency other than the crown, or
  • you live outside of the Czech Republic.

 

How to handle Lite Lender mortgage in foreign currency

money loan

The process of arranging a mortgage to buy an apartment or building a house is simple and the same hair as if applying for a loan employee who is paid in crowns.

The difference, however, is that Lite Lender only accepts income in euros and, moreover, only from employment. And here it can be a problem to get a mortgage to buy a home for a Czech working in Britain.

And I’m not talking about the situation when you do business in Britain. I know from the practice that this is an insoluble problem for many banks.

 

How banks deal with exchange rate risk

mortgage loan

I bet it was the first thing you thought of. What if there is a situation that strengthens the crown so much that I will not be able to repay Lite Lender mortgage? Fortunately, this is addressed by the already mentioned Consumer Credit Act.

Banks are obliged to inform you practically immediately if the exchange rate changes by more than 20%, and then they are obliged to inform you annually about:

  • mortgage balance
  • amount of individual installments
  • options to change the currency in which you pay the mortgage
  • what other measures you can take to reduce the exchange rate risk.

This is related to another obligation of banks to state in the mortgage loan terms and conditions under which you can change the currency in which you repay your mortgage.

If this option is not mentioned, then the bank will have to think of other measures to protect you against exchange rate movements.

Credit for trainee teachers

A legal trainee is in training for civil servants in higher service. As a rule, the internship lasts two years. However, it can also be shorter. The job is safe, because a trainee lawyer is a civil servant after his training and is therefore welcome at every bank. A loan for trainee lawyers is possible under certain conditions.

When is a loan possible?

When is a loan possible?

A loan for trainee lawyers is possible if the term does not extend beyond the traineeship period. One can normally assume that a trainee lawyer will later become a civil servant in the higher service, but because this is not yet certain, the banks tend to approve a loan with caution. It is easier to use the overdraft facility in the checking account. It is freely available and can be used without asking. However, it should also not be concealed that the overdraft is significantly more expensive than an installment loan. Sometimes there is no other way.

Does it make sense to ask the house bank?

Does it make sense to ask the house bank?

If you are looking for a loan for trainee lawyers, you should first contact your house bank. The advantage is that the trainee may be one of the long-standing customers and when talking to his personal contact person, a loan is more likely than with a foreign bank. Now, at the latest, it is becoming clear that it can be advantageous to be a customer at a branch bank because you know each other here. The internet also offers plenty of opportunities for a loan, but it is difficult for a trainee lawyer. Personal contact with his client advisor can be very helpful in this situation.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Applying for loans through capital lender is easy. An online loan application is sufficient to address both banks and private investors at a serious level. Of course, the borrower decides who gets the loan.

Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.

Credit despite private credit checker entry.

Debt, indebtedness and over-indebtedness play a major role in today’s consumer society. Due to many temptations, numerous, especially young people tend to over-finance themselves and are no longer able to meet their payment obligations.

If this is the case in whole or in part, this is noted at credit agencies such as private credit checker, which worsens creditworthiness and obstructs access to new loans. Some banks have discovered this gap in the market for themselves and have been offering people with poor credit ratings a loan despite private credit checker entry for some years.

Who offers a loan despite private credit checker entry?

Who offers a loan despite private credit checker entry?

As a rule, banks from abroad primarily offer these loans from Switzerland, which is why they are also referred to as “Good lender loans”. In some cases, foreign credits are also processed through German intermediaries. But the money comes exclusively from abroad. These are also widely advertised on television or on the Internet. In this context, credit without private credit checker means that no private credit checker information is obtained from the bank when a loan application is made, and that the bank does not report the granting of the loan to private credit checker either. The whole transaction runs past private credit checker.

Under what conditions is a loan granted without a private credit checker entry?

Under what conditions is a loan granted without a private credit checker entry?

Since these loans are given to people with poor or non-existent credit ratings, interest rates are higher than for other loans because the banks calculate with a higher default rate. It is not possible to make a definitive statement about the level of the interest rates, since they depend on other factors, but there is usually a range of 6-10%.

In principle, these loans are only granted to borrowers who can demonstrate a corresponding income, on the basis of which the interest conditions and the loan amount are calculated on the basis of factors such as the repayment rate. Depending on the bank, both small loans up to 5000 USD and loans up to 50,000 USD are offered.

Comfortable holidays with a credit card

Credit cards are versatile. Not only do they make shopping easier, they also help with online bookings – for example of hotels and rental cars.

Sometimes it can not be done without: If you book a hotel online, you often experience that the credit card number must be given – unlike package tours, where the customer usually has the choice between different payment methods. However, it is worth taking a closer look here, because there are two types of bookings: with prepayment or with a credit card guarantee.

When booking with prepayment, the entire amount is due immediately. The alternative with a credit card guarantee is much more attractive: No money is debited when you book. You usually have the choice of paying in cash or with another debit or credit card. In this case, the credit card only serves as insurance for the hotel. The credit card will only be charged if the accommodation is paid in advance and cannot be canceled – or if the cancellation period specified in the booking has been exceeded. There are often deadlines up to which day before arrival what amount is due.

If you pay or guarantee a hotel booking online with a credit card, there are usually no fees. At least with the big providers. For some smaller hotel agents, however, a small processing fee is payable – even if the cancellation is generally free of charge. It is worth taking a look at the booking conditions here.

 

Car rental bookings by credit card

Car rental bookings by credit card

If you want to be mobile at your destination and want to explore the surrounding area, you can often book a rental car. Best of all from home, because the booking here is usually in German, so that even complex clauses of the rental agreement are easier to understand. In addition, prices and conditions can be compared in advance in peace. The same applies here: at the major international car rental companies, you usually need your credit card to book the vehicle you want.

This is convenient and, depending on the card model, you may also receive a discount thanks to your credit card. In addition to the rental price, the deposit is also deposited with the credit card without cash. If you also plan to pay by credit card on site, it may be worth talking to the Sparkasse before you travel and getting the credit line temporarily increased.

 

Check carefully in the event of damage

credit loans

If you are involved in an accident with your rental car or the car is scratched, your credit card may be charged with the cost of the damage. Therefore, check your credit card statement carefully. If there are any inconsistencies, you should first speak to the car rental company.