As a business owner there may come a time when you need to raise cash, either because of an unexpected cost or emergency, or because you see an opportunity to invest for growth. In either scenario you have a few options to consider, like borrowing from your bank, another loans provider, or even freeing up equity in your assets – like property, machinery or vehicles.
Logbook Loans, for example, allow you to free equity in vehicles you own. It can be organised quickly and the first bit of good news is that you can keep using your vehicle while you make your monthly instalments.
How do they work?
A Logbook Loan is ‘bill of sale’ borrowing of between £300 and £25,000 that is secured against a vehicle. The loan company will take possession of your V5 document, but you keep the keys – this is good to know if you rely upon the vehicle to do your job.
As long as you own it and there is no outstanding finance against it, you can use a motorbike, car or van to take out a logbook loan and repay it over an agreed period, usually between six months and three years.
Why choose a Logbook Loan?
- Easy to apply, and your cash is made available within hours
- Competitive interest rates – especially if you hand over your spare keys as extra security
- No admin, setup, credit checks, early repayment fees or hidden costs
- Flexible payment terms – weekly or monthly, and by direct debit, cash or cheque
- Available to people with bad credit ratings, because it’s secured against an asset
- All makes/models of motorcycle, car and van under 10 years of age can be used as security
The only potential downside is that if you cannot keep up the agreed payments, the loan company is within its rights to repossess the vehicle. It’s worth noting that ethical lenders like Auto Advance will always try and help you find a way through financial difficulties before this happens; it’s always best to alert your creditors before your situation gets out of control.
In some situations a Logbook Loan might not be the right option for you or your business. The government has a search facility to help you find schemes and access to other forms of business funding support, which you can find here.
This sponsored post was provided by Auto Advance , an established Logbook Loans company committed to providing an excellent level of customer service and ethical, affordable lending.