All businesses need cash flow to survive and expand. Often business owners will turn to the banks when more money is required. While there is certainly nothing wrong with approaching your bank manager for a Business Loan, there are alternatives that can be a better option; particularly if you need the cash quickly or a short-term loan is more appropriate for your business requirements Click here for a guide on this.
So what’s another option that might be more viable?
A quick Pawn Loan from a private finance company.
What Is a Pawn Loan?
A Pawn Loan is a fast and easy way to access instant cash without any credit or employment checks. It requires you to use a vehicle or valuable as security on the loan, by leaving it with the lender until the loan is repaid in full, including any interest and fees. A reputable Pawn Loan lender will store the asset in a secure holding ensuring your asset is returned to you in the same condition as you left it. If you renege on the loan, the lender keeps the item.
The loan amount is determined by the market value of the vehicle or valuables you are pawning. You will generally be offered up to 60% of the asset’s market value, and can borrow from about $2,000 up to $500,000. Most Pawn Loan terms are 3 months, however most lenders will be flexible in allowing you to pay off your loan sooner without penalty.
Why Is a Pawn Loan a Better Option Than a Bank Business Loan?
One of the key reasons a Pawn Loan can be a better idea than approaching a bank for business cash flow is the speed with which it all happens. Banks can take a while to make a decision on finance, time you might not have.
You may need instant cash to cover the cost of a new and lucrative contract or an emergency in the workplace that needs to be rectified ASAP.
With a Pawn Loan, you can have the money you need on the same day or the very next day, provided you have something of value to leave as security against the loan.
With Pawn Loans there is also minimal paperwork, so you won’t be tied up for days trying to source all the documentation required to get the application completed and submitted. You’re leaving an item of value as collateral, so most of the documentation a bank would require is not applicable.
What Items Can Be Used As Security For Business Pawn Loans?
One of the most common items you might use to secure a Pawn Loan for your business is a company vehicle. You may even have several vehicles or a fleet of vehicles you can put up for collateral. The more vehicles you have and the more they are worth, the more money you can borrow.
Pawn Loans range from around $2,000 and up to half a million dollars or more, so as you can see, there is some serious money you can borrow if need be.
To get an estimate of the kind of cash you can loan, if you had a company vehicle(s) worth $100,000, you could borrow up to about $60,000. Vehicles might be a company car, trucks, forklifts, earth moving equipment and more.
Businesses can also leave valuable business equipment as security against a Pawn Loan. It’s not restricted to vehicles alone.
What Is the Eligibility Criteria?
When it comes to vehicles, they need to be less than 10 years old, have less than 150,000km on the clock and you must produce the vehicle’s registration papers. Plus, you must own the vehicle outright.
There is also a 100 point identification check to prove who you are.
That’s all there is to it, apart from the application form and signing off on the loan.
How Do You Apply?
You might be wondering if you can apply online for a Pawn Loan. Well, not exactly. What you can do online is fill out a simple form and get an evaluation of the item you plan to offer as security. An estimate will then be made regarding the loan size you’ll be eligible for.
This estimate is subject to change, as the lender really needs to see your item in real life for an accurate valuation.
To find a Pawn Loan provider near you, simply search online. As an example, if you’re in Sydney, try searching for ‘Pawn Loans in Sydney’, then take your pick from the results.
So you understand exactly what’s involved, be sure to thoroughly read through the terms and conditions on the private lender’s site before committing to a Pawn Loan. Interest rates are fair and a Pawn Loan is one of the fastest ways to get your hands on the cash flow you need.
