Capital scarcity is one of the reasons why up to 80% of start-ups, entrepreneurs and SMEs in South Africa fail within the first five years.
If your commercial venture in Gqeberha (Port Elizabeth) needs cash to cover short-term liabilities, a wholly owned asset like a company car, delivery van or pickup truck can be the solution.
Here’s what you need to know about using a vehicle to unlock business capital in Gqeberha within 24 hours.
When to consider applying for a loan against a business vehicle
Leveraging an asset to secure financing involves some degree of risk. As with all types of loans, the funds are repayable over an agreed term, typically between three and 24 months.
The consequence of a default is the sale of the business vehicle pledged as security for the loan.
This type of funding model is designed to enable business owners to:
- exploit a lucrative deal or tender
- invest in inventory or product ahead of the busy season
- fill the financing gap between accounts payable and receivable.
Ideally, the capital must be used to grow the business, not cover the costs of day-to-day operations.
How vehicle-backed loans work
Finance providers like LoanAgainst accept privately or commercially owned vehicles as collateral for short-term loans.
An appraisal expert physically examines the vehicle to determine fair market value.
Available financing is based on a percentage of the appraised value of the car, bakkie, motorbike or truck.
Funds are disbursed on surrender of the vehicle, which is securely stored until the capital, plus accrued interest, is repaid in full.
Why a loan against a business vehicle is invaluable to start-ups and SMEs
A key driver behind the rising adoption rate of asset-based loans is an easy approval process.
Young enterprises can raise capital without having to submit business financials, as typically requested by banks.
No data is divulged to rating agencies. The company’s or business owner’s credit score is inconsequential.
Funds are released against the vehicle, not an entrepreneur’s financial track record or credit history.
Transactions of this kind are completely confidential. They have no impact on the ability to raise funds or qualify for a line of credit in the future.
Getting a loan against a business vehicle in Gqeberha through LoanAgainst
LoanAgainst is a digital business financing platform. Loan applications are facilitated online or via a centralised call centre. To process an application, we require:
- the make, model, age, mileage and condition of the business vehicle used to secure the loan, and
- how much you intend to borrow against the asset.
A preliminary, no-obligation offer is relayed telephonically.
If you wish to proceed, an appointment for a vehicle appraisal is set up at the LoanAgainst Gqeberha branch.
At that point, available financing is confirmed, and a formal loan agreement is signed by both parties.
The business vehicle, together with the original registration papers, a copy of your ID and proof of residence, are handed over.
While in our custody, the vehicle is completely off limits. It is insured and warehoused for the duration of the loan term.
Why LoanAgainst?
LoanAgainst is the digital division of a registered financial services company. We specialise in providing short-term asset-based loans to businesses and individuals.
When you secure funds through LoanAgainst, you’re assured of:
- competitive interest rates
- transparent terms
- loan extensions on request
- no early settlement penalties
- quick, easy funding approval.
To secure a loan against a business vehicle in Gqeberha or elsewhere in South Africa, call us on 27 10 745 7061 for more information or simply complete and submit our online loan application.
