Loans against vehicles as collateral as an alternative way to borrow money
Restaurant owners, event organisers, and tourism operators have been struggling for months because of the health crisis and restrictions on trade as a result. For many of them, conventional bank loans are not even an option. They simply do not qualify. However, a solution is available. The loans against vehicles as collateral solution, as available through us, provides an outcome for struggling self-employed people in these sectors.
With millions of people now without jobs, the economic situation in the country leaves many without a means to access much-needed finance. Self-employed people already do not have monthly salary payment slips. Their credit records may also not be as favourable as required to qualify for loans. In addition, they cannot show sufficient disposable income after deduction of expenses to qualify. Millions of South Africans are left on the side-lines because they have lost their jobs, are self-employed and have been struggling, or are one of the business owners not being able to operate at full capacity for months.
Banks require solid credit records with no adverse notices. They also consider whether the client’s bank account has ever gone into debit, what level of debt exposure the client already has, and whether there is a risk that the client may not be able to pay back the money borrowed.
For people left on the side-line, the economic reset has also meant that they cannot get money to resume business. With cash-flow essential to survive in the competitive business world, an alternative is needed.
If they have access to cash to help them get through the slow income period or to adapt their business models to work in the restricted trade environment, there is hope.
What is the solution?
We make it possible for a person to borrow money against their vehicle, which is offered as the collateral for the loan. With this approach, we fill a gap in the credit market and provide people with access to cash when they need it.
Advantages of borrowing against a vehicle as collateral include, but are not limited to:
- Quick cash without a lengthy application form and waiting period.
- No effect on the borrower’s credit history or record.
- No need for proof of income.
- No credit checks.
- No background checks.
- No need to disclose the reason for borrowing money against a vehicle.
- Safe storage of the car until the amount has been paid off.
- If the person cannot pay back the money borrowed at all, then the vehicle is sold to recoup the amount borrowed. The debtor does not owe anything after such, and their credit record is not affected.
- Amounts between R5 000 and R250 000 can be borrowed, based on the assessed value of the vehicle put up as collateral.
- Cash is paid to the bank account of the applicant immediately after approval.
Applying for one of the loans against a vehicle as collateral can be done in three easy steps. Find out how by using our online enquiry form.