Building Your Commercial Fleet of Sprinter Vans While You Build Your Business and Its Credit
Want or need sprinter vans for your business? Then you should be building business credit!
Your business doesn’t start off with good business credit already built. It takes some time. So, in order to save time, it pays to work in an orderly fashion. Step by step, it all works together.
Building business credit will mean getting vendor accounts. Starting with vendor credit accounts is a proven way to start building business credit. But we don’t include vendors just because they report to the business credit reporting agencies.
We include them and we talk about them because they have quality products that you can use and great customer service. They are not just a means to an end!
How Do Sprinter Vans and Business Credit Work Together?
Sprinter vans can currently cost between $35,000 and $45,000 and that’s before you add options. So sprinter van financing should definitely be on your radar.
With business credit, it’s not just about buying the sprinter van. It’s also about fueling and maintaining your sprinter van. Starter vendors for business credit will help with the former. But—even if it feels as if we’re putting the cart before the horse—you need to be further along in the business credit building process in order to do the latter.
So let’s start with building business credit.
Building Business Credit the Right Way
First build starter trade lines that report (vendor credit). Then you’ll have an established credit profile, and you’ll get a business credit score.
Vendor Credit Cards
Once you’ve added payment experiences from three vendors, and they have reported to business CRAs like Dun & Bradstreet, you can start qualifying for fleet credit. Make sure business credit cards don’t report on your personal credit.
Every step and every credit provider is designed to help your business. The idea is to help you qualify for business credit cards that you will actually use.
Using Business Credit Vendors
Check out three of our favorite starter vendors:
- 76
- Wex Fleet
- Marathon
All three come from Wex
76
Phillips 66 Company owns 76. This card reports to D&B and Experian. But keep in mind: before applying for multiple accounts with WEX Fleet cards, leave enough time in between applying so they don’t red flag your account for fraud.
Qualifying for 76
To qualify, you need the following:
- Your corporate entity must be in good standing with the applicable Secretary of State
- An EIN
- Company address matching everywhere
- D-U-N-S number from Dun & Bradstreet
- Your business license (if applicable)
- A business bank account
- Plus a business phone number with a 411 listing
So keep in mind, your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can give a $500 deposit instead of a personal guarantee if you’ve been in business less than a year. Apply online or over the phone. Terms are Net 15. You can use this card at any P66, 76, or Conoco fueling location.
Wex Fleet
They report to Experian and D&B. Wex cards have a rewards program. But before applying for multiple accounts with WEX Fleet cards, leaave enough time in between applying, so they don’t red flag your account for fraud.
If you’re not approved based on business credit history, or been in business for at least a year, then a $500 deposit is needed or a Personal Guarantee. Apply online or over the phone. Terms: Net 15 (Wex Fleet Card), Net 22, or revolving (Wex FlexCard).
Qualifying for Wex Fleet
To qualify, you need:
- Your Fundability Foundation™
- A business Bank account
- Business phone number with a 411 listing
Marathon
Marathon Petroleum Company‘s card reports to Dun & Bradstreet and Experian. Remember: before applying for multiple accounts with WEX Fleet cards, leave enough time in between applying so they don’t red-flag your account for fraud.
Qualifying for Marathon
To qualify, you need:
- Your Fundability Foundation™
- A business bank account
- Plus a business phone number with a 411 listing
Your SSN is necessary for informational purposes. If concerned they will pull your personal credit talk to their credit department before applying. You can provide a $500 deposit instead of a OG if in business less than a year. Apply online or over the phone. Terms are Net 15.
Let’s move onto what’s called fleet credit.
Fleet Credit
Fleet credit comes concurrently with and after starter vendors. You can use it to:
- Buy fuel
- Maintain vehicles of all sorts, including sprinter vans
- Repair vehicles
Fleet credit works for sprinter vans. These are usually gas credit cards.
There may be a minimal time in business requirement. If your business can’t meet such a requirement, you may be able to instead offer a personal guarantee or give a deposit to secure the credit.
Now that you’ve got a bunch of cards to support your fleet, it’s time to look at sprinter financing to buy and expand the fleet!
Vehicle Financing
Sprinter van financing is a great way to get a vehicle now. With a sprinter van, your choices are usually buying or leasing. Providers include banks like Bank of America or the financing arm of the manufacturer, such as Chrysler Capital.
Using Business Credit for Vehicle Financing
You can finance a vehicle purchase or lease through our Business Credit Builder. These offers are in Tier 4, so they have certain requirements that business credit neophytes just won’t be able to meet. Lenders will want to see that you have the income to support the purchase.
Consider Ally Car Financing.
Ally Car Financing Through Credit Suite
Ally provides personal financing, but will also report to business credit bureaus. If your business qualifies for financing without the owner’s guarantee, you can get financing in the business name only. Ally will report to D&B, Experian, and Equifax.
Qualifying for an Ally Commercial Line of Credit
You will need:
- Your Fundability Foundation™
- A business bank account
- Bank reference
- Fleet financing references
If you use a personal guarantee, Ally will not report to the personal credit bureaus unless the account defaults.
Qualifying for Ally Commercial Vehicle Financing
You can get a lease or a loan. To qualify, you need most of the same things as you need for an Ally Commercial Line of Credit, except for a bank reference and fleet financing references. There is no minimum time in business requirement. Apply in person only, as the dealer will advise if you have an approval or will need to provide a PG.
Ford Commercial Vehicle Financing Through Credit Suite
Ford offers several commercial vehicle financing options. This is not for sole proprietorships. You can get a loan or a lease. Ford may ask for a PG if you are not approved on the merit of your application. Apply at the dealership. Ford will report to D&B, Experian, and Equifax.
Qualifying for Ford Commercial Vehicle Financing
To qualify, you need:
- Your Fundability Foundation™
- A business bank account
- Strong business credit history, with a good Experian business credit score.
Now that you’ve got the cars and the cards, it’s time to look at using your business credit for vehicle financing.
Vehicle Financing
With commercial vehicle financing, business owners may be required to personally guarantee vehicle loans. If you are a co-borrower the loan will most likely report to your personal credit report. Starting off by giving a PG means you can get money, and start building your commercial fleet, now instead of later.
PG (Personal Guarantee) Financing
According to Investopedia, a personal guarantee is
“an individual’s legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance. Personal guarantees provide an extra level of protection to credit issuers who want to make sure they will be repaid.”
When you provide a personal guarantee, you are adding your Social Security number to the application. You should expect a hard inquiry. You’re also adding the details of your personal income to the application.
No PG (Personal Guarantee) Financing
With no PG financing, you can get higher limits and better terms. Continue to build exceptional business credit and pay your bills on time. In general, the following will eliminate the need to provide a personal guarantee for this type of financing:
- good business credit
- a decent amount of time in business or
- good personal credit
Much like with any other kind of business borrowing, the more assurances you can give the lender, the better. With well-built business credit, you’re giving the lender a positive assurance that you’ll pay them back.
Get Sprinter Vans with Business Credit: Takeaways
Use business credit to buy everything you need to run a fleet, from fuel to service. And use auto financing to buy your sprinter vans. Drive your business’s future! Let’s get together and have a conversation about getting started.
