Pawning a Vehicle: A Quick Strategy for Handling a 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.
