Smart Financing Tips for New Livery Operators

Hey new livery operators,

I’ve been in your industry for over 30 years, and I’d like to share some advice to help you build your business.

One of the biggest mistakes operators make when they start is walking into a dealership to finance their first vehicle, only to find the company has no credit. They either put the loan in their personal name or put it in the company name with themselves as a co-buyer.

Eventually, you want to buy vehicles solely in your company’s name.

If you start putting loans in your personal name, you can appear overextended by the time you want a third or fourth vehicle, risking denial. Similarly, co-buying still impacts your personal credit, leaving you in the same overextended position.

My advice is to put the loan in your company’s name with you as a guarantor. As a guarantor, you’re still responsible, but it won’t show on your personal credit.

Over time, as you grow and pay on time, you build business credit. Eventually, you can stop being a guarantor and let the company stand on its own.

This tip will help you grow your business!

David C Bastian Jr

716 341 0201

dbastian@towneauto.com

townelivery.com