Sole trader loan - personal or business?

spikey78

Hi, I'm a sole trader and need to get a loan to buy a new car which is used for the business. Clearly the rates for personal loans are preferential, but i wonder whether I have to apply for a business loan as that is what it is primarily for?
Does anyone have any experience or knowledge about this please?
Many thanks

19lottie82

How many years accounts do you have, and what's your average profit over the last 2 or 3?

I'm not an expert but I think "buying" a car against your business may be complicated, would you not be better leasing one?

macman

Used exclusively for the business?

spikey78

Ive got accounts for the last 3 years, average profit is £36k. Its used 95% percent for business.
Its too late for leasing-ive ordered it already

SeanG79

Rates will be less if you purchase just in your personal name.

The dealer finance credit lines will approve finance for business, but the rates are higher than personal loans

andyfromotley

I'd phone your accountant quickly see if there is a tax advantage?

jonesMUFCforever

VAT - Business you can claim it back - personal loan - no way.
Business loans - the loan will be a business expense which you can offset your tax - personal loan - nothing.

I know what I would apply for but it depends on the type of books you have.