Small business owners often struggle to get business assistance from banks, especially quick, short-term loans. However, such businesses are the most at risk of closing doors because of short-term cash flow problems. The owners may require cash injections to bridge periods in which they wait for payments from clients or for funding new opportunities. With stock not counting as collateral, they have no other choice than to sign surety for their businesses. However, should their businesses not be able to carry the debt, they become personally responsible for the business debts, jeopardizing their personal finances in the process.
A solution is at hand. Quick, short-term loans against the security of movable assets, such as motorcycles, caravans, trucks, and cars provide for immediate cash at hand. The business owners can use the money towards the payment of salaries while waiting for clients to pay for large contracts. They can pay off the loans once the clients pay, or do so in instalments.
The assets are placed in secure storage and are insured. Once the short-term loans that were given quickly have been paid in full, the business owners take possession of the vehicles used as security. If they cannot pay off the amounts when due, they can arrange for extension of the agreements and simply make sure the interest is paid in full on the due date. If, for some reason, they cannot make payments at all, they do not risk building bad credit.
The assets are sold to cover the debts and the surplus from the sale is paid to the business owners. With this solution, business owners do not have to sign surety for their business credit. They gain quick access to funds without requiring superb credit records and business plans. It is thus possible for their businesses to grow. With many businesses having more than one vehicle, it is possible to go without the additional vehicle for a short period until the amount outstanding has been paid. It is a win-win situation, giving them access to much-needed funds when they require such.
With all the credit regulations in place and banks hesitant to lend money, these quick loans for the short-term, at reasonable interest rates, are fast becoming popular finance vehicles for smaller businesses. Companies, such as XCELSIOR, as registered credit providers, offer such finance.
With the loans set to a maximum of 50% of the asset value, the risk of the businesses not being able to pay the full amounts is significantly reduced. Business owners can borrow between R5000 and R500 000 against their movable assets, ensuring enough funds to continue business operations while waiting for payments from clients or for the expansion of business operations.
The lending model thus makes it possible for smaller businesses to stay competitive, even during tough economic times. Interested business owners are invited to use the online application process, or to call us for immediate assistance with quick, short-term loans against their vehicles, such as cars, motorcycles, caravans, or trucks in South Africa.