Are you looking to raise cash quickly? It is now possible to organise a short term business loan offering your car as security.
If you have a luxury car which is free of finance , you can release the money or equity tied up in your car on a short term basis. This is different from a traditional refinance agreement that provides funding on a hire purchase agreement over a number of years. The finance company will take your car as security which will be stored in a secure facility.
Whilst this kind of offering will not be an option to everyone there are plenty of business owners out there that may have a second luxury toy or car. As you can imagine APRs wont be the cheapest however they never are when it comes to bespoke and creative funding. It does however provide a quick fix alternative to the bank funding which in the current climate isn’t available to everyone.
How it works. A trade value of the car is obtained from the finance company. A percentage of this trade value is is provided on a short term loan. There are no monthly repayments. Interest accrues on a monthly basis and the finance is repaid at the end of the loan agreement typically 3-6 months. This kind of lending is ideal for customers that maybe have a guaranteed lump of cashing coming to them but need something to keep them ticking over
Tags: car finance, hire purchase, refinancing
