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Let’s dive straight in! Step 1: Obtaining Business Credit Make a credit history. Contact Dun & Bradstreet, the largest corporate credit bureau. You may set up a profile and submit documents such as financial statements. Then, create a Dun & Bradstreet profile on their website. To obtain a Dun & Bradstreet credit score, you must have at least three trade lines (called a Paydex score). Trade lines are available from big shops such as FedEx, Home Depot, and Staples. If the seller isn't currently reporting your payment information to Dun & Bradstreet, request that they do so. Improve your company's credit. We have covered this in most of this course, so let's move to the next step. Step 2: Purchase the Vehicle • Examine your company's credit score. Before visiting a dealership, check your company credit score with each of the three major credit bureaus: Dun & Bradstreet, Equifax, and Experian. • You must pay to view your company credit score. Contact each bureau separately. Experian credit reports are approximately $36.95, Equifax scores are $99.99, and Dun & Bradstreet reports are $61.99. • A credit score of 80 or above is typically considered acceptable and should qualify you for loans. • If your company's credit is poor, consider leasing an automobile rather than purchasing one. Look for dealerships that have commercial sales divisions. These divisions specialize in assisting companies in purchasing and registering automobiles. Stop by a dealership and inquire about their business sales department, which can make purchasing a car easier. Select a suitable vehicle. For example, purchasing a minivan may be acceptable if you own a catering company. On the other hand, purchasing a sports automobile may raise red lights with the IRS. Therefore, you should never purchase an automobile for personal use via your company. Provide financial details. Before issuing a loan, lenders will want to view several financial documents. For example, they may request financial information such as your company's balance sheet. You should also expect the lender to check your personal credit history. As a result, you should obtain a free copy of your credit report and review it for mistakes. Resolve any inaccuracies with the credit reporting agency that contains incorrect information. You can get a loan from the dealership or shop for a vehicle loan from local banks and credit unions. Always declare that you are looking for a loan under your company's name. • Compare interest rates and other parameters to discover the most affordable loan. You should not assume that the dealership provides the best bargain, even if getting their finances is the most convenient option. Make a guarantee for the loan. Your business credit may need to be more vital to obtain a loan solely in your company's name. Some lenders may need you to sign a guarantor. This implies you are liable for the loan if your company fails to make payments. • Consider your options carefully before proceeding. To repay the debt, the lender may sue you and seize other personal assets. Make loan payments regularly. Remember to utilize your company bank accounts to make auto payments. If you make payments with personal accounts, your business seems to be a fraud. Step 3: Register Your Vehicle & Obtain Insurance If you use your automobile primarily for business purposes. However, personal auto insurance may be preferable if you use the automobile for business part-time. Again, think about how many staff will be driving the automobile. • You can get insurance from companies like Geico, Allstate, and Progressive. Also, check your phone directory for local insurers that may provide cheaper rates. • If unsure where to start, contact the insurance agent who sold you commercial liability insurance. Register the vehicle under your company's name. The cost of car registration varies by state. In addition, you'll most likely be required to provide copies of your Articles of Organization or Incorporation to demonstrate that your firm has been properly constituted. If required, keep a mileage log. You may be driving for both work and pleasure. However, you may only deduct the business share of the cost. Keep a mileage diary, if required, noting how much you drove for business purposes. Make a tax deduction claim. The tax deduction regulations are intricate and vary depending on whether the vehicle is owned as an LLC, one-member LLC, corporation, or partnership.