The asset loan process is similar to that of obtaining a bank loan, without all the paperwork. A couple things to remember before explaining the process. Loan companies are not as regulated as banks, so be sure to compare rates and payback periods to ensure the best deal. The loan company you use should be transparent in all it’s dealings and offer excellent contracts and detail, much like CarPawnLoan.co.za for example.
An asset loan is essentially a loan based on the equity you have in an asset. The asset can be anything from jewelry to art and memorabilia but the most common is a car or other type of vehicle.
To get the loan visit your local company and have them assess the asset. They will then give you an estimate and figure they are willing loan to you. Once you pay back the loaned amount, your asset is returned. The typical loan period for these types of loans is 30 days but longer periods can be negotiated.
Like a bank loan which typically requires real estate as the preferred asset to secure the loan, which can also be repossessed due to non-payment, you stand the risk of losing your asset. Should you encounter payment difficulties it is always advisable to contact the loan company and renegotiate the terms, most are happy to do this.
Be advised that whilst an asset loan is a quick way to obtain fast cash without all the traditional paperwork of a bank loan, the interest rates are typically higher. This is due to a variety of reasons including the type of asset used and the risk the loan company places on the transaction. It is definitely worth your time to compare companies before signing on the dotted line.
Kidal Delonix is a contributor to Mr. Hoffman's blog. The views and opinions are entirely his/her own and may not reflect Mr Hoffman's views.
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