Pawning a Vehicle: A Quick Strategy for Handling a Cash-Flow Crisis

cash flow crisis

Handling a cash-flow crisis is essential for any business and pawning a vehicle is a quick strategy for dealing with one.

The key to long-term business survival is preparing for this scenario.

General steps for handling a cash-flow crisis

How do you handle a cash-flow crisis when your business revenues have tanked?

The answer is to adopt a strategy that improves liquidity.

Here are a few ways to achieve this:

  • prioritise paying expenses that support business operations and generate revenue
  • actively pursue overdue payments, even if it means taking legal steps
  • sell non-essential assets and use the funds to cover costs
  • raise investor capital by selling off a share of business equity
  • consider various loan options, such as lines of credit, bank loans and pawning a vehicle.

Potential benefits of pawning a vehicle

When handling a cash-flow crisis, speed is essential.

However, borrowing money from a bank can be a long and tedious process.

Getting a loan against a vehicle takes a few hours.

Once the paperwork is complete, the funds are instantly available.

What’s more, the transaction is confidential.

As the capital is secured by the vehicle, the loan isn’t recorded as credit history and no information is shared with any credit bureau.

Pawning a vehicle makes no impact on your credit score or the ability to borrow money in the future.

When pawning a vehicle may be the best option

Getting an unsecured bank loan is not an option when your company’s financial statements don’t inspire confidence or your business has already exhausted its line of credit.

Even if funds are available via mainstream lenders, the risk is high of losing core business and personal assets through default.

Rather than jeopardising your home and business, consider pawning a vehicle.

It’s a low-risk way to raise capital.

The only asset that can be seized to recoup any losses is the vehicle used to secure the loan.

What vehicles can you pawn?

Any fully paid up vehicle can be pawned to raise the funds required for handling a cash-flow crisis – a car, truck, bakkie, boat or motorcycle.

The value of the loan is commensurate with the make, model, age and condition of the vehicle.

What’s needed to pawn a vehicle?

The only documents required to support the transaction are:

  • proof of identity
  • proof of residence
  • the vehicle’s original registration certificate.

What Pawn My Car offers

Pawn My Car is an accredited provider of vehicle-backed loans in South Africa.

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.

We ensure the vehicle is securely stored for the duration of the loan term and safely returned once the loan is paid back in full.

Why not visit a Pawn My Car branch and find out how pawning a vehicle can be a quick strategy for handling a cash-flow crisis.

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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