As a business owner, it is highly likely you are going to need to borrow money at some point. There are a number of reasons why this may be the case. You may, for example, need money to get started or to buy new equipment. You may need to pay off some suppliers. No matter what applies, researching your options is imperative. So, let’s take a look at one option in further detail…
‘Logbook loan’ is a term that is becoming used more and more frequently nowadays. Unfortunately, one of the reasons why this is the case is because an increasing number of people are finding themselves in a situation whereby they need to borrow money. However, on the other hand, the positive is that this type of loan is attracting a lot of attention because it means that there is another lending solution available. However, is this the right solution for you? Keeping that in mind, read on to discover all you need to know about logbook loans…
First and foremost, it is important to reveal what a logbook loan actually is. This is a loan that is secured against your vehicle. This could be your own personal vehicle or it could be any of your business vehicles you have purchased outright. You will have to hand over your car’s logbook. If you fail to make the repayments, the company then seizes your car. However, if you make the payments you have agreed to; you will have full access to your vehicle. Generally, companies will lend you up to 70 percent of your vehicle’s current worth. You will then have between six months to a few years to pay back the loan, depending on the terms you have agreed to.
This is obviously an ideal loan for anyone who owns a car. You will need to prove that you are over the age of 18 years’ old and that you have a full driving license. You will also need to show that you have paid for the car in full and that the insurance, MOT and such like are up to date. Aside from this, one of the main things that will be required from you is income slips or something similar. This is to prove that you are capable of making the repayments. A lender will not give you money if they think you are going to falter on the payments.
Is this a good lending option? Well, as mentioned in the introduction, general feedback will tell you that the answer to this question is yes. A lot of people favour logbook loans, as they offer a short term lending solution with more flexibility than a payday loan. You can borrow a greater amount of money and you have more time to pay the loan back.
However, this is still only a good lending option for low amounts of cash over a short term. For example, you may want to take on a big order yet you do not have the immediate resources to do so. It is not right for a substantial amount of money, for example, purchasing a business office. In that case, companies like Altrua can help with more substantial loans and mortgages.
Nonetheless, no matter what type of loan you go for, it is all about finding the best lender. Take the time and make the effort to find a loan that is one hundred per cent suited to your situation. This should not be difficult when you consider the wealth of options available. Thus, look for a company boasting a lot of experience and make sure they have a good reputation. You can be sure of this by reading reviews that have been left by previous customers.
Hopefully you now know all you need to in regards to logbook loans! This is a solution a lot of people are leaning towards nowadays when they need some extra cash. Nonetheless, find a good lender and make sure you read the terms and conditions carefully. If you do this, you should be able to see yourself out of the tricky financial situation you are experiencing. Never rush into lending money.