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Best strategies to follow when trying to get a self-employed car loan in Welland

Best strategies to follow when trying to get a self-employed car loan in Welland

If you want to start a business in Welland and need a car loan, you've come to the right place.

However, as a business owner, you will face unique problems when you try to get a car loan in Welland or anywhere else in Canada.

Is your cash flow consistent?

When deciding whether or not to give you a car loan, companies look at two things: how much money you make on a regular basis and how responsible you are with your money.

As an entrepreneur, your cash flow may change from day to day, especially if you run a seasonal business or are just starting out.

Lenders will want to know how much money you bring home each month on average. If you worked a typical 9-to-5 job, your pay stub would be enough, but entrepreneurs need to give more information.

The lenders will want to see your last year's bank statements and your last two years' income tax notices of assessments. Covid has made it very hard for Canadians to make money from coast to coast to coast.

By looking at these proofs of income, lenders can figure out how much of a car loan you can afford.

How good is your credit?

If you live in Ontario and make enough money to get a car loan, the next thing lenders will look at is your credit score.

The average credit score in Canada is around 650, and you can get prime interest rates if your score is 720 or higher.

You should make it a habit to check your credit score so that there are no shocks when you need credit.

Most Canadian entrepreneurs use their personal credit cards to pay for business costs; your credit score may be lower than average.

Make it a top priority to pay off your debts as soon as possible. This will save you money on interest and improve your credit score.

Most auto loan providers don't know how to underwrite self-employed car loans

Even if you have good credit and a steady income, some lenders will not give you a loan if you are a business owner. Most of these lenders' attention is on Canadians who have traditional jobs with a steady income and little risk.

If you want to find lenders who can give you the best terms, you will need help from a professional.

How to get the best terms for a car loan in Welland

The best thing you can do as a business owner is to ask a local car dealership for help. The dealership would know first-hand which Canadian lenders specialize in giving business owners car loans.

The dealership would also know how to get the best deal for you when negotiating terms.

There are also credit experts at the dealership who can show you what steps to take to improve your credit score.

You need to call your local dealership and find out what steps you need to take before you can buy a new car.

If you need help or advice on anything to do with auto loans in Welland, contact Car Nation Canada today, we can help!

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