Most lending institutions will not acknowledge paying off a lease as building business credit. I’m just about a month away from paying off a lease, I inquired with a few banks and credit unions about financing my next truck, they all said you will be considered a first time commercial truck buyer.
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Can a lease purchase be utilized to establish business credit?
Discussion in 'Lease Purchase Trucking Forum' started by MOEcAAsh trucker, Feb 1, 2021.
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All that said, when I went to my bank to borrow money for a new truck, I brought with me my proof that I had paid off my lease on time.
Perhaps it didn't change my credit score, but it meant something to my local bank.
And that's always been my advice; do your banking locally.Jarhed1964, Robert gilley, jason6541 and 1 other person Thank this. -
Reading up on BUISSNESS credit I can can make a argument for using personal credit because you have more protection under federal and state laws
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Amex recently gave me a Business Amex with a $34K line of credit with some very basic business questions, having an 810 score, and the big kicker...you personally guarantee the card. So it falls back on your personal credit history
Now they tell me I'm preapproved for up to a $75K business loan for 8.95% or less, and they haven't seen one tax return, one quarterly report, or a month of worth business checking statements.
Business credit checks outside of a bank are a matter of asking the business looking for credit to list 3-5 companies you have accounts with, how much you average per month, and how long you have been doing business with these companies.
The company you filled out a business credit app for then faxes or emails the companies you listed and asks how long you have been doing to business, high credit or highest balance, credit limit, how you pay (prompt, takes an early pay discount, pays in 30 days, over 30 days, been cut off, etc), and then some thinly veiled question if you recommend giving this business credit. -
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If you’re going to utilize business credit, as you should be, you’re going to need a Dun’s number. Dun & Bradstreet
You should read up on establishing business credit and why it’s important and beneficial. The main point I want to stress is the importance of keeping your personal finances COMPLETELY SEPARATE from you business finances.Jarhed1964 Thanks this. -
Hello -
You're "Business Credit" isn't going to help you get in your first truck any more than your personal credit is.
Here's the big questions they look at in determining your eligibility:
1) Have you or are you an O/O? How long?
2) How long have you had your CDL?
3) Driving record.
4) Do you have a DOT number?
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