Help Center

Financing in the Business Name FAQs

  • What is a Third Party Guaranty?

    Designed exclusively with the business owner in mind, our Third Party Guaranty allows business owners to keep their business transactions at arm's length and their personal name off the vehicle contract and title.

    The business owner still provides the additional financial backing that Credence Global Bank may require, while keeping their personal credit free and clear of business obligations, except in the event of default.

  • What are the advantages of a Third Party Guaranty?

    A Third Party Guaranty:

    • Builds credit in their business name
    • Keeps the debt off the business owner’s personal credit bureau reports, except in event of default
    • Provides protection from liability related to operation of the vehicle, since the guarantor's name stays off the vehicle's title and contract (As opposed to a co-buyer, whose name always appears on the title and contract)

  • Can a Third Party Guaranty debt affect a business owner’s credit?

    Yes. If the business owner is the guarantor, defaulting on a Third Party Guaranty could affect their credit.

  • Does a Third Party Guaranty protect a business owner from liability?

    Yes. A Third Party Guaranty provides some protection from liability related to operation of the vehicle, since the guarantor's name stays off the vehicle's title and contract. (As opposed to a co-buyer, whose name always appears on the title and contract.)

  • If a business defaults on the debt, what happens?

    The guarantor, often the owner, is responsible for the debt.

  • How is a Third Party Guaranty different from having a co-signer?

    Unlike with a co-signer, in a Third Party Guaranty agreement, the guarantor is not on the title and does not have the debt reported on his or her personal credit reports – except in the event of a default. This is beneficial because the Third Party Guaranty helps build credit in the business name and shields the business owner from some level of risk.

  • What’s the difference between a Third Party Guaranty and the Business Name Only option?

    With a Third Party Guaranty, the business owner or guarantor is ultimately responsible for the debt if there is a default. With Business Name Only financing, the debt is completely in the name of the business.

  • What is the Business Name Only financing option?

    Businesses that can qualify for financing without the owner’s guaranty can obtain financing in the business name only. This enables owners to save their personal credit for other uses.

  • Who is eligible for Business Name Only financing?

    Businesses that qualify for financing without the owner’s guaranty.

  • What are the benefits of Business Name Only financing?

    This value-added option gives owners the ability to save their personal credit for other uses. It also helps shield the business owner from liability related to operation of the vehicle, since the owner’s name stays off the vehicle’s title and contract.