Working independently offers great earning potential and flexibility, whether you own a small business or take freelancing gigs. Having a vehicle attached to your business, such as a van for independent construction or HVAC services, can be a real asset. Getting pre-approved for a van loan can simplify the purchasing process and make you a more appealing prospect to dealerships.
Below, we’ll discuss the ins and outs of getting a van loan as a contractor and a few tips for securing a pre-approved car loan. We’ll also discuss how Auto Loan Hub can help you with our hassle-free loan process. Keep reading!
The Challenge of Securing Financing When Self-Employed
Proving income can be a challenge when securing financing or a loan as a contractor. Most people who work independently don’t use the same documentation as traditional employers, such as pay stubs, which can make your income stability harder to prove. As a result, conventional lenders may be more hesitant to approve financing for you.
To prove your income as a contractor, you’ll need to offer alternative documents to your potential lender. These documents include business tax returns, bank statements, income statements, balance sheets, and profit and loss statements.
Ideally, you’ll want to provide financial records going back two to three years to show the growth and stability of your business and personal earnings. The type of work you do and how you send invoices or bills may impact the records your chosen lender will need to review.
Overall, proving your worth to your lender may require a bit more preparation, but it will be well worth the effort!
Tips for Getting Pre-approved for a Van
While proving your worth to a lender can be more challenging as a contractor, there are plenty of things you can do to prepare for your loan application and be a more appealing candidate to lenders:
Grow your credit score: If your credit score is sitting in the low-mid range, consider taking the time to improve it before applying for a loan. Having a high credit score as a self-employed contractor will further demonstrate to lenders that you’re responsible with your funds, showing you a lower-risk borrower.
Save for a down payment: If you can put a larger down payment on your new van, this will reduce the amount you need to finance, resulting in lower monthly payments and interest rates. Paying a larger sum upfront will further demonstrate your ability to pay off your vehicle over time.
Do your research: Before starting the pre-approval process, research different van makes, models, and prices to get a good idea of what you need for work and what you can afford (you can use our Auto Loan Hub Calculator to figure out your budget). This will help you be more prepared when selecting your van, as it will cut your shopping time in half and show the dealer that you’re a serious buyer.
Get a Pre-Approved Car Loan with Auto Loan Hub
The sooner you can secure a pre-approved van loan, the sooner you can get back to work! At Auto Loan Hub, we simplify the loan pre-approval process with our quick and easy prequalification tool. Within minutes, you can find out whether you qualify for a pre-approved loan. From there, we’ll help you select a van that suits your needs and budget and a lender whose loan terms fit your circumstances.
Visit our How it Works page to get started!
