7 Ideas for Starting a Business with a Loan Against Your Car

Starting a business with a loan against your car could be a smart way to leverage the value of a vehicle – without having to sell it.

A short-term loan that could help improve your financial outlook is a positive financial decision.

In this article, we look at some ideas for starting a business with a loan against your car that could work well in South Africa.

1. Start an employment agency

With our high unemployment rate, a lot of people are on the hunt for a job. An agency that helps connect employers with employees can be in high demand.

A lot of companies, especially larger ones, don’t have time to sift through CVs and conduct interviews. They rely on employment agencies to do the legwork and select the best candidate.

You can start small with an agency that offers basic headhunting, CV screening and first interviews. You can grow your team until you offer full-service recruitment. Offering a CV compiling service to job seekers is also a good way to grow your database.

To start, you’ll need:

  • a laptop with internet access
  • a reliable phone
  • access to a meeting room or office for interviews
  • a basic website and good social media presence
  • good people skills.

You will also need a good database of job seekers and employers, but this will be built over time. This type of work requires a lot of cold calling and networking.

2. Home-based laundry and ironing services

Many people struggle to fit a load of laundry into their work week, especially with loadshedding. If you have a washing machine, you can start by offering basic laundry services to the people in your neighbourhood.

As you grow, you’ll need to invest in industrial machinery that can handle the strain, but a regular machine will get you started.

To start, you’ll need:

  • a good washing machine
  • an affordable and neutral laundry detergent
  • space to dry or a tumble dryer (or both)
  • space to sort washing
  • bags to protect clean washing
  • a phone with a payment app
  • an ironing board and iron.

If you don’t have a washing machine, ironing services are a good place to start. Clients can drop their ironing off in the morning and collect it in the afternoon.

3. Coffee kiosk

Many people take their coffee very seriously and artisanal coffee is popular. A coffee stall or kiosk can start small and be built up over time.

A coffee kiosk can be operated outside your home to begin with. A coffee cart gives you the freedom to operate at festivals and markets.

To start, you’ll need:

  • a good espresso machine
  • a reliable coffee supplier (preferably local)
  • takeaway cups and lids
  • coffee-making paraphernalia
  • an accessible area to operate from (with passing trade)
  • a phone with a payment app.

As your business grows, you can offer a range of drinks.

4. Bike or scooter deliveries

Bigger courier companies with cars and trucks often have to deal with a lot of traffic. This can delay deliveries, especially for important documents.

Offering a fast bike delivery service to a smaller area means you can be highly specialised. You can deliver anything from court documents to lunch orders in under an hour.

To start, you will need:

  • a reliable bike or scooter
  • a valid scooter licence
  • a lockbox or backpack
  • a phone payment and navigation apps
  • insurance for your bike and yourself.

5. House or pet sitting

People are protective of their homes and pets so there’s always demand for a reliable and trustworthy house or pet sitter.

Housesitting is something you can do with very little investment, but you may need to register with an agency or do some free gigs for friends to get experience and references.

To start, you’ll need:

  • contactable references
  • police clearance certificate
  • a decent phone for communication and marketing
  • reliable transport.

6. Lunch delivery service

Many office and retail workers find it difficult to go out to buy food. Those with long commutes might not have time to prepare a packed lunch.

If you live near a business park or shopping centre, offer a lunch delivery service. It doesn’t have to be anything fancy. A simple but fresh sandwich delivered at lunchtime can be a lifesaver.

To start, you’ll need:

  • ingredients to prepare the lunches
  • disposable packaging
  • a phone with a payment app
  • printed menus to distribute to offices and shops
  • potentially permission from the office block
  • a bicycle or scooter to make deliveries.

As your business grows and word gets around, you can expand your offerings to cooked meals and softdrinks.

7. Garden services

With surprisingly little upfront cash, you can start a grass cutting service that can later expand into other garden-related services.

Offer to cut lawns and clean up afterwards on a weekly basis. You can also offer to do the more tedious jobs, such as weeding paved areas.

To start, you will need:

  • a weed eater (or “weed whacker”)
  • a rake
  • basic gardening/weeding tools.

Even if you can’t currently afford certain tools, you may be able to offer a service using clients’ tools. As your business grows, you can buy tools.

How Pawn My Car can help

If you’re considering starting a business with a loan against a car, we’re here to help.

With Pawn My Car, you can use a car, bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no delays or laborious paperwork. For more information, contact us on 0861 112 866 or simply complete and submit our online application form.

Complete an application now

APR & Loan period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.


All accounts may be renewed if they are up to date.


All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.


Non-payments may result in the matters being escalated.

Illustrative example

Client borrows R10,000 for 90 days.

Repayment Period
Monthly Repayment
Total Cost of Loan
Monthly Fee
(Interest + Service Charge)
Loan Amount


Repayment Period

3 months

Monthly Repayment


Total Cost of Loan


Initiation Fee


Monthly Fee (Interest + Service Charge)




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