Avoid Business Foreclosure By Applying For Car Title Loans!Fast Action Finance SEO
Every business or organization needs funding to enable it to maintain its operations, or to further expand. For small businesses especially, applying for a loan is usually a priority in order to increase its potential profits and grow as a company. When applying for conventional loans, lending companies have to carefully scrutinize both the business owner and the business itself to see if one is a viable borrower. The banks have to look at a business’ history, revenues, business credit, equity contributions and balance sheet. This process usually takes some time and for a business owner looking for quick financing, it can create quite an inconvenience.
What so many business owners don’t know is that they can apply for car title loans in Toronto to help their business avoid foreclosure. All they have to do is approach a lending firm and use their car titles as collateral to apply for a loan.
Keep Detailed Records of Your Vehicle Worth
One common mistake business owners make when they use their car titles as collateral for a loan is they think the vehicle’s worth is more than it actually is. They usually consider what they paid for it and think the lender will value it the same way. The truth is lenders consider the current market share of a vehicle which is usually lower due to depreciation.The lender will also look at the wholesale value of the vehicle, not the retail value. If you are not sure what the current worth of your vehicle is, you can find an independent appraiser to give you an idea. You may also contact Fast Action Finance, and we can give you a quote on how much money we can lend on a given vehicle.
Before applying for a car title loan, you need have the documents and records for your vehicle. Some of these records include the registration of the car, the insurance and all maintenance records. Having these records in order makes it easy for both the business owner and the lender to come to an agreement on the amount of loan to be disbursed.
Understanding The Risks
Before applying for a car title loan to expand your business, you need to consider how you will use the funds. Financial advisors recommend that you have a short term goal on how to expand your business since these loans don’t have a long loan term. If you are a sole proprietor and you use your personal car to conduct your business, you need to understand the risks involved if you default your loan. If you don’t pay back your loan on time, you risk losing your car to the lending company. When this happens, you will not only lose the car but the business gets affected too.
Negotiate The Terms of Repayment
Unlike conventional loans, car title loans don’t require one to have a good credit score as long as you can prove ownership of the your car title. These loans are short term and they take a short time to process. If you are business owner looking for a quick short term loan, you need to approach a reputable lender and discuss on terms of payment. You can visit as many lenders as you want and then compare the interest rates charged to enable you choose the best. Be careful to read through the terms and conditions of applying for a car title loan before signing and look for any hidden charges. If you don’t fully understand what the contract says, you can have a lawyer explain it to you and agree that you are comfortable with the terms set.