One of the skills you need as a small-business owner is knowing when and how to spend capital on business assets. A business vehicle, whether it’s a car, a van, or a bakkie, is an asset that can help your business grow.

You can use your company vehicle to fetch stock and make deliveries, transport workers or sales reps, or for your own business transport. Another advantage is that a portion of the costs of owning and running a business vehicle is tax deductible.

Luckily, Nedbank digital tools take all the hassle out of buying a business vehicle. You can browse Avo Auto from your desktop, laptop, or mobile device to see all the vehicles for sale at a range of Nedbank-approved dealerships. Search by make, model, year, or price range, and when you find the business vehicle you want, you can apply directly on Avo Auto for vehicle finance. MFC, a division of Nedbank, makes it easier for small businesses. 

Understanding small-business vehicle-finance essentials

MFC offers a range of vehicle finance options to e-hailing services, security services, delivery companies, and any other business that needs vehicles in its day-to-day operations. MFC works with a large selection of approved dealers across the country to give clients the vehicles that suit their business needs – bakkies, vans, sedans and more.

Of course, certain conditions are attached to business vehicle finance from MFC. It can be used only to buy individual, new vehicles for your business – not to finance used vehicles or fleets.

To qualify for vehicle finance, your business needs a good financial record and proof that it is a healthy business. You cannot be a subcontractor, you need to have been in business for at least 3 years, and you must be buying the vehicle outright – not renting or leasing it.

Mastering business vehicle loans

Before you apply for finance, check that you can afford the vehicle with the MFC Budget Calculator and MFC Instalment Calculator. You can submit your application for MFC vehicle finance at the dealership or on Avo Auto. You need to specify that the car will be used for business, so that MFC can assess the application accordingly. Application requirements may also vary, depending on the type of business and the purpose for which you will use the vehicle.

You must also submit all the necessary documents, including your business’s monthly bank statements, your company registration and VAT number, details of the company director and trustees, and proof that your business can afford the vehicle.

If you are going to use the vehicle to transport people, your driver must have a professional driving permit, and your business insurance must cover public liability.

The experienced consultants at MFC and Avo Auto can help you assess your affordability score. They also offer support and guidance if you need to adjust your budget and financial habits to make vehicle finance affordable.

Apply for credit directly with Nedbank for the best experience

Whether you use our digital channels or ask your banker to submit an application for you, dealing directly with Nedbank has some advantages:

• When you bank with Small Business Services, you get access to a dedicated relationship banker. Your banker knows you and your business and will help with your application.
  
  
• We can clear up your questions about the application directly with you if you need us to.
  
  
• When you apply directly through Nedbank, you do not pay an agent commission, so there’s a good chance that you’ll get a better rate.
  
  
• To apply for vehicle or asset finance through Nedbank, log in to Online Banking and switch to your business profile. Go to Applications > For My Business > Borrow > Vehicle or Asset Finance. Alternatively, speak to your relationship banker to get started.