Using a Vehicle to Get a Small Business Loan

Using a Vehicle to Get a Small Business Loan

Is your business struggling to make ends meet? One quick finance option is to use a fully paid up vehicle to secure a short-term loan.

For example, you can use a personal or company car, bakkie, delivery van or even a one-ton truck as collateral for a loan. This is one of the quickest and least risky ways to get a small business loan.

Why consider a vehicle-backed business loan

A vehicle-backed loan is a type of asset-based loan. As the funds are secured by a business asset, there is no need to submit business financials or bank statements.

Similarly, the track record and credit history of the sole proprietorship, CC or company is irrelevant.

Provided the vehicle is no longer financed, and in good condition, your business will qualify for a loan – whether it is a brand new startup or has only been operating for a short period of time.

How to get a vehicle-backed business loan in South Africa

At Pawn My Car, we process vehicle-backed loans within 24 hours.

All that is required is information about the car, van or bakkie, such as make, model, condition and mileage, which you can provide online, or over the phone. Based on that information, we will make you an initial offer of a loan.

If the amount quoted meets your approval, we will set up a convenient time for you to bring the vehicle in to the nearest Pawn My Car branch for a physical appraisal.

Thereafter, the loan agreement is drawn up, and the car, bakkie or truck is safely stored at a secure lock-up facility, and fully insured for the duration of the loan term.

On signature of the agreement, the funds are transferred into your small business account, and cleared for immediate access.

What documents are required to secure a loan against a car, truck or bakkie?

The only documents required to facilitate the loan are the original vehicle registration papers, and a copy of the registered owner’s ID.

If the car is registered in the name of the business, we will need a certified copy of the company’s founding documents.

Where to get a quick cash loan against a company vehicle

Pawn My Car operates branches in Cape Town, Johannesburg, Durban and Port Elizabeth. Branches are centrally located, and open during normal office hours.

Benefits of vehicle-backed loans from Pawn My Car

Some advantages of using a vehicle to get a small business loan from Pawn My Car:

  • NCR compliant interest rates
  • same-day payment via electronic fund transfer
  • no upfront fees or hidden penalties
  • no effect on your or your business’s credit score
  • a trusted South African company with physical branches across South Africa
  • a division of lamna Financial Services, a registered credit provider (NCRCP7428).

For more information about using a vehicle to secure a small business loan, contact us on 086 172 9648 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 Terms
Monthly Repayment
Total Repayment
Monthly Fee
(Interest + Service Charge)
Loan Amount


Repayment Terms

3 Months

Monthly Repayment


Total Repayment


Initiation Fee


Monthly Fee (Interest + Service Charge)