How to get money for your business expansion: getting a business loan against a vehicle
Entrepreneurs form the backbone of the economy, yet, accessing funds for new projects, start-ups, expansions or to manage cash-flow situations can be challenging. A solution is now available in the form of a business loan against your vehicle.
How does it work?
Whether it is a car, bakkie, truck, bike, trailer, caravan or boat, all you need is a vehicle against which you can borrow money. The application process is straightforward and you can have the cash in your business account immediately after approval. The application commences by verifying your documents and the vehicle is assessed in terms of its value. Based on the assessment, we offer a loan amount and explain the interest and payment terms to you. We provide short-term loans but you can pay your loan off earlier than originally agreed without incurring hefty penalties for doing so. Once paid, the asset is returned to you in the same condition as originally received.
What is needed?
The original registration papers of your vehicle, your South African driver’s license and ID, if you are the applicant, are needed along with your chosen vehicle. The company or close corporation registration papers along with identity documents of all the close corporation members or directors (as relevant) must also be submitted.
What about credit checks?
As the loan is a pawn transaction the asset is the security for the amount you want to borrow thus no credit checks are performed. If the agreed-upon amount and interest are not paid back, the asset is sold to recoup the loan amount without it affecting the credit history or record of the business and its directors or close corporation members.
What amount can be borrowed for a business loan against a vehicle?
The amount is determined by the car’s value and not the company or close corporation’s credit standing, income generation capacity, or risk profile. An amount from R7 000 to as much as R250 000 can be borrowed.
What happens to the asset?
It is placed in safe storage for the period of your loan. Our storage facility has camera surveillance, electric perimeter fences, gate access control and 24/7 security. The assets at the property are protected against usage, vandalism, theft and weather-related damage. We insure your vehicle while in our care but recommend you keep your insurance cover for the period.
Where do I take my car?
XCELSIOR currently has five branches across Pretoria, Johannesburg and Witbank. The application can be started via email, over the phone, or via our online application form but the car must be brought to the branch of your choice to complete your application.
How quick is the cash released?
The application is quick and simple and you can unlock the value of your asset within 60 minutes with immediate pay-out after approval and you don’t need to state the reason for borrowing against the asset. Whether you need it to bridge a cash-flow situation, want to buy into a new venture or require funding for business expansion, it is up to you to determine how to use the money.
Where to get more information
Call us 012 997 1062 or complete the online enquiry form to have a consultant call you to start the application process for a business loan against your vehicle. We also welcome direct communication with one of our branches. Reach out to the branch of your choice here.