For those who have been in operation for some time, it’ll be simpler to take a loan to grow your organization. Without giving a part of your company (like many startups do,) you occasionally need to jump through various hoops. Applying for a loan, they might even need to appoint a cosigner or make extra collateral available to back the loan.
But what if there is no cosigner or collateral available, and your company is suffering from cash flow problems? Seeking instant monetary support for your company, you can either choose the route that many companies take: Sell off your inventory, or your other assets.
But it doesn’t have to be that way.
The Perfect Solution
There are loans that boast quick approval for a certain amount. Payday loans, bad credit loans and car title loans are some of many types of quick-approval loans. With the assistance of these loans, you’re going to be able to receive the money you need quicker in comparison to a conventional bank loan. The idea is for you to use the loans for acquiring new businesses and use the profits to repay the loan as soon as you can.
Of all quick loans, perhaps the better quick loan solution of all is car title loan. How so?
Things You Should Know About Car Title Loan for Startup
According to Consumer.gov, here’s how a car title loan works: For a sum of money, you give the lender the title of your car (or any other vehicle types that you own) plus a fee for borrowing the money. The repayment period is usually 30 days.
Because you can secure these loans so you may relish your private car or you could spread your company by utilizing the vehicle you have bought for business. They will vary in their amount, interest rate, time to repay and in other aspects. So you should shop around to get an idea or two on the available options.
You can start your search for lenders online. Once you’ve decided, apply for a car title loan online. But first, you need to know the good and bad of car title loan.
- Fast approval: The best part is always speed; car title loans are typically quick to approve. Your application is usually approved within 24 hours period, versus weeks when you apply for a conventional bank loan.
- Your business can still use the car: What you give to the lender is the title of your car, which mean you can still use it for business operational. The title will be returned when the loan matures, and you make the repayment.
- High interest rate: The APR of a car title loan can be very high.
- Poorly regulated: If you don’t know what you’re doing, nobody can help bailing you out, should you’re not able to repay your loan.
Things to Note
Quick loans like car title loans have a tendency to carry a high interest rate. But if you know what you are doing (e.g. not borrowing for more than 30 days period,) car title loans are great solutions for your startup funding.
That said, make sure that your startup is focused on profits AND growth, and the profits are sufficient enough to repay the loan on time.
Car title loans are for business owners who prefer convenience. These loans may serve as an alternate supply of startup capital, but be aware that they shouldn’t replace other less-risky startup funding options. Focus on using the loans for securing new business and repay them ASAP.
One last thing: When you are applying for a car title loan, you must fully understand what you are getting involved in. It can grow your startup or destroy it – your pick.