Limousine Financing, Updated Information

As the economy has weakened, many lenders have changed their lending models. Many lenders have shied away from the transportation area and concentrate on other lending portfolios. Limousines, Limousine Bus, Hearst financing has become tighter as the economy has weakened and this credit crunch continues.

In the financing market today, Limousine Financing has A-C lending. To qualify for A lending, the applicant must have at least three years time in business, five figure business bank balances, minimum personal credit score of 675, and a low ratio of debt to income ratios. Additionally, the owners of the limousine company shouldn't have any prior bankruptcies. If the limousine applicant qualifies, the minimum down payment should be first, last and possible some documentation fees. The limousine lender will finance this acquisition from 36-72 months depending upon the age of the limousine, bus, etc acquired. This limousine financing arrangement will pass title at the end of the term subject to the state the arrangement was commenced in.

B and C lending for the most part is similar but the minimum person credit scores of the applicants will range between 600-675....B Lending will range from 640-675 and the applicant should be in business at least a couple years. The minimum business bank balances require mid to high four again the lease terms and passing of title is similar to the A Credit...

C Lending is similar to A and B lending but the minimum credit requirements are 600 or higher. The business bank statement requirements are usually low to mid 4 figures. The lease terms and passing of title is similar to the A and B Credit requirements...

Obviously, there are differences in Lending A-C requirements but the lending formula is basically the same. The rates, the front money between lending levels will vary depending upon the lenders. Additionally, most of the lenders have application only programs up to some stated dollar amount. Over these basic levels, the requirements will be full financial and tax documentation.

Startup Limousine financing is a different area. Today, many lenders will shy away from this because of the risk factor. Other lenders that will finance this niche but will require a substantial down payment and the rates will be sky high. Additionally, the minimum person credit requirements are 600 or higher.

Either way, most limousine financing will require personal guarantees.

The type of transportation vehicles for this article include:

Limousines, limousine busses, mini-vans, limo sedans, sedans, busses, school busses, coach busses, vans.

The types of limousines include Lincolns, Chrysler, DaBryan, Ford Excursions, Mercedes, Stretch Limousines, SUV, Hummers, Escalade, Navigator, Cadillac, Tiffany

In conclusion, the transportation industry is going through the same tough credit financing as all other industries. As we passed through tough times for gasoline prices and the economy has slowed down, 2009 could be a challenging year. One positive sign that we are seeing at the present time is lower gas prices. Hopefully as the travel and entertainment economy recovers, the limousine industry will expand accordingly.

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