It’s common for businesses to take out short-term loans to bridge a temporary gap in cash flow or to cover an unexpected expense.
Traditional bank loans are an obvious option but asset-based loans are a safer and quicker option.
Businesses can use a paid-off company vehicle to secure an asset-based loan in Cape Town.
Where to get loans against business vehicles in Cape Town
If you need to secure a loan against a business vehicle in Cape Town, lamna offers this type of asset-based loan in the CBD. You can find our offices on Strand Street on the corner of Rose and Strand Streets, opposite the State House Building.
Our Cape Town branch is within walking distance of the train station and bus or taxi routes. You can call or WhatsApp this branch on 086 111 2866. Alternatively, you can start the application process online.
How asset-based loans against business vehicles work
An asset-based loan is based on the value of an asset. This means you can borrow money up to the resale value of your business vehicle. Because this type of loan is secured by an asset and not by income, it’s a lot quicker and easier to secure a loan.
Simply start your application online or by calling or WhatsApp 086 111 2866. You’ll then bring the car to the Cape Town branch to be evaluated.
Based on this evaluation, you’ll be offered a loan amount. If you’re happy, you sign the loan agreement. We take temporary possession of your vehicle and the funds are transferred into your account within 24 hours.
Your vehicle will be securely stored as collateral for the duration of the loan and returned to you once the loan and the interest are repaid in full. The loan doesn’t affect your ownership of the vehicle and no-one uses your vehicle during the loan period.
Potential benefits, compared to other loan types
Asset-based loans offer a number of advantages over traditional bank loans.
No credit rating impact
An asset-based loan is not based on your business’ credit rating. The loan doesn’t affect your credit score even if you default on the loan.
Fast access to funds
The application process for an asset-based loan is simple and fast. Your business can have access to funds almost instantaneously.
Low risk
In the unlikely event that you default on the loan, your business vehicle is sold to cover the loan amount. This means the bad debt can’t affect the rest of your business assets or the business itself.
You get to keep the vehicle
Many people would opt for selling the vehicle to cover a temporary cash-flow issue. With a loan, you still have the vehicle once the loan is repaid.
Less paperwork
There’s no need to submit account statements or other business documentation to apply for a loan that’s based on a business vehicle.
Cape Town loans against business vehicles from lamna
Getting loans against business vehicles in Cape Town is easy with lamna. We’re an established and trusted asset-based lender with branches across South Africa and in Botswana.
We’re accredited with the NCR and FSB and our interest rates are in line with the NCA. We don’t charge any hidden fees or penalties.
As well as business vehicles, we offer fast, discreet loans against the value of a wide range of assets, including luxury watches, jewellery and valuable works of art.
For more information about getting a loan against business vehicles in Cape Town, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
|---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
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.