• Last Updated:
  • Apr 9th, 2021 9:18 am
[OP]
Newbie
Mar 13, 2016
25 posts
2 upvotes

Buying company vehicle

hi guys,
quick question about buying vehicle for my company.

they told me I have to put my name as the co-borrower, and that would be showing on my credit check.

how do I finance/lease a car with company only? without the owner being co-borrower?

thanks!
3 replies
Member
Jan 18, 2017
343 posts
252 upvotes
Get on better terms with the bank. Or, put up collateral.

Sometimes banks will advance non-personal guarantee loans if your corp buys a GIC or such with said bank, and then signs it over as security against the loan. It gets around the Personal Guarantee issue, but the loan is still essentially guaranteed.
muktlz wrote: hi guys,
quick question about buying vehicle for my company.

they told me I have to put my name as the co-borrower, and that would be showing on my credit check.

how do I finance/lease a car with company only? without the owner being co-borrower?

thanks!
______
Canadian & US tax guy (CPA)
Member
Jul 31, 2017
333 posts
344 upvotes
Toronto
Flip the question and ask yourself as a business owner, would you lend money to company to purchase a vehicle with no ability to recoup your losses if they cease trading?
Sr. Member
May 29, 2012
541 posts
201 upvotes
Southern Ontario
This is the question to ask. The bank doesn't feel safe enough just lending to your business yet, they want you to be a guarantor. If you really don't want to do this you could try to politely push back and tell them this doesn't work for you and ask for a different solution, you may or may not get another offer.

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