With how popular and accessible car title loans are these days, it is surprising to not see more car titles being used to leverage a business loan. Covid impacted several family businesses and many owners were left scrambling to pay the building rent and overhead costs during lockdown. It highlights the fact that life throws us unexpected curveballs out of our control.
When it’s time for extra financial support, business owners often think of lending from a family or friend, a bank or investor, or temporary layoffs to keep afloat. But did you know there is another option? Some business owners use what’s called an “auto-title” loan, which basically means using your vehicle as collateral by signing over ownership via the title. Depending on your situation, it just might be worth considering.
Car title loans in Edmonton
The reality of keeping a business alive during hard times is the fact that we need to find new alternatives and be inventive to keep the dream alive. One of the major alternatives that are being turned to during these hard times in Edmonton, is car title loans. Car title loans in Edmonton have helped a lot of owners save their business by providing them the cash they need to be able to get through the challenging times.
These types of loans are simple and a very safe choice when you need access to quick cash. You provide your car tite and the lender will provide you the cash for the value of your vehicle. You get to keep your car during the loan and they give the title back at the end. Here is a guide to how a car title loan can help get you the funds you need.
How do you get a car title loan?
To get yourself a car title loan, you need to have the title to your vehicle. You must own your vehicle and the bank cannot be on the title of your vehicle. The vehicle title must be in your name and you have to provide the title as collateral to the loan you take. Once you pay the loan off you, get your title back and you get to keep your vehicle while you pay on the loan. You can apply for a title loan in person or you can fill the application out online and approval is usually the same day or within 24 hours. Set aside about 20 minutes to fill out your application.
Can you afford the payments of a car title loan?
Yes, the payments are very affordable. These loans are very safe and not meant to break you. The loan is structured over a longer period so the payments are smaller. These payments consider your income and this comes with higher interest, which we will go over below.
Will the terms of a car title loan help or hinder you?
The terms of a car title loan are not the same as some traditional terms. These loans are safe so you can pay them off on time. To keep smaller and more affordable payments, these loans are stretched over a longer period. Because the loan payments are stretched over a longer period to keep payments smaller, the interest is higher than a typical loan. What is great about this though is that you get to pay your loan out early with no penalties. This will allow you to skip having to pay the interest on the monthly payments long term.
The reality of keeping a business alive during hard times is the fact that we need to find new alternatives and be inventive to keep our dreams alive. Car title loans will help tremendously, giving us another revenue stream as well as an opportunity for people who are looking for capital with bad credit histories or no credit history at all. Use this as a guide and resource next time you need to get a quick title loan to help the family business get through hard times.