Thursday, May 12, 2016, AM | Leave Comment
Sometimes, your business will require a certain amount of daily commute to be made by its employees. When that happens what you need is a company car.
Some would argue against this since buying a motor vehicle is still a substantial investment, but using public transportation or outsourcing these services has several serious drawbacks.
It is unreliable, it is much more expensive in the long run and it sends a bad company image.
On the other hand, there are some benefits when it comes to buying car for business that make this decision even simpler.
No more travel expense reimbursement
First of all, reimbursements for travel expenses that you will pay to your employees will be simply ridiculous. Of course, there are always exceptions, but if your employees are ever going to steal from you, there is a 90% chance that it will be on travel expenses.
By having a company car that they can drive in their line of duty, you will only be paying for the gas and in this way save a fortune in the long run. Subsequently, this also puts you more in control over your business commutes which is always a positive thing.
Qualifying for business loan
Now, business loans are a genuine deal breaker when it comes to buying a car. They are quite affordable and the interest rate is staggeringly low.
However, you first need to qualify for a business loan which is usually not so simple.
First you need to build a positive reputation with the bank. The easiest way to do so is to take a small loan (usually one that you can pay off in a couple of months) and return it in time. This will serve as a testament to your reliability.
You can also use credit cards to boost your credit rating. However, you must remember that it is an absolute paramount that you make all your payments in time or this plan could backfire.
Make a proposal
Next step is absolutely vital and what you have to do now is make a proposal to the bank. Make sure to go as much in depth as you possibly can and describe in great detail what you need that loan for.
Explain briefly yet plainly in what way would buying that car increase your business’ productivity. You also need to make a specific claim about how much money you would need and let the bank know if you have any collateral as a guarantee.
Last but not the least important, the bank also needs to know how many and which of your employees are going to be driving the car. Needless to say, make sure that all of them have a clean driving record.
Finding the car
As soon as you get the money, you can start looking for the suitable vehicle. Now, remember you don’t need something that will help your neighbors envy you or women to swoon when you drive by. What you need is something affordable, practical and functional.
On the other hand, you also don’t want to get something too cheap or bad looking since this car is now a part of your company’s image and there are those who will evaluate you based on it.
The easiest way to find an optimal company vehicle within a reasonable price range is to look for it on one of the amazing car auctions.
It is true that, some people find all of this paperwork to be too difficult or too annoying to deal with.
However, people who are unable to handle the bureaucracy behind something as simple as buying a company car shouldn’t be in business in the first place.
All in all, this is just one of the many opportunities that can help make your job even more frugal than it currently is. Needless to say, you need all the help you can get.Facebook.com/doable.finance