Businesses often run into unexpected costs or cash-flow issues. Most businesses take a short-term loan to cover the shortage.
However, traditional short-term loans carry risks with high interest rates and hidden fees. They can negatively impact a business’ credit score.
Asset-based loans are an alternative that help businesses avoid these risks. Learn more about getting loans against business vehicles in Port Elizabeth below.
How loans against business vehicles in Port Elizabeth work
Loans against business vehicles are asset-based loans. This means the loan is secured by an asset such as a vehicle. The loan amount is based on the resale value of the vehicle.
Because of this, the loan doesn’t require reams of paperwork or a good credit rating. If the business can’t repay the loan, the vehicle is sold to cover the owed amount.
However, once the loan and interest are repaid in full, the vehicle is returned to the business and the loan doesn’t negatively affect the business going forward.
How to apply for loans against business vehicles
Applying for loans against business vehicles in Port Elizabeth is easy. Simply start your application online and provide all the details about the business-owned vehicle. We’ll give you a preliminary quote based on this information.
If you’re happy to go ahead, you bring the vehicle to the Port Elizabeth branch for final evaluation. We’ll make a final offer and you sign the loan agreement.
The funds are paid directly into your bank account, usually within 24 hours.
We take possession of the vehicle, which is securely stored until the loan is repaid. Then it’s returned to you.
The benefits of getting a business loan against a vehicle
Getting a loan against a business vehicle offers the following benefits compared to other loan options:
- credit rating is unaffected
- no bank statements or business documents submitted
- low risk and can’t affect business assets
- quick access to cash
- doesn’t affect vehicle ownership as long as loan is repaid.
Loans against business vehicles from Lamna in Port Elizabeth
Lamna offers loans against business vehicles in Port Elizabeth. Our Port Elizabeth branch is in Gecko Park on Buffelsfontein Road in Mount Pleasant.
The branch is just minutes from the Moffet on Main Lifestyle Centre and Walmer Park Shopping Centre.
At this branch, you can bring your vehicle in for a final evaluation or pop in to apply for a loan.
Why choose Lamna for your loan against a business vehicle
Lamna is a registered credit provider, accredited with the Financial Services Board and the National Credit Regulator. We have branches in cities across South Africa and in Botswana.
Our interest rates comply with those set out in the National Credit Act. We don’t impose hidden fees or early settlement penalties.
For more information about loans against business vehicles in Port Elizabeth, call us on 086Â 111 2866 or 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.