As the need for corporate lending seems to be increasing, there are many different ways you can borrow money in the present day. One option that is growing in popularity is a logbook loan. If you opt to go down this route you will borrow money against your car. Usually, you can borrow as much as 70 percent of your vehicle’s current value. You will still get to keep your car, so long as you make the payments that have been outlined in your contract. This can be beneficial for any business with a fleet of vehicles.
As you may imagine, there is a wealth of companies offering logbook loans in the current day. Therefore, it is up to you to narrow down your search as effectively and efficiently as possible so you end up with the best loan deal. This blog post reveals five of the crucial factors you must look out for when searching for a logbook loan company. So, let’s dive straight in…
- Does the company have a good reputation? – First and foremost, it is important to select a company boasting a good reputation. Take five to ten minutes to read reviews that have been left by previous customers. How was their experience dealing with the company? Were they easy to contact? Were there any hidden fees or catches? This is the only way you will receive an honest answer to the questions you really want to know.
- What are the repayment terms? – You have to carefully assess the repayment terms the company has put in place. It is not always about how much you can borrow, it is about how you are going to pay the money back as well. How much interest do you have to pay? Is it split evenly over a certain period of time? What happens if you miss a payment? Can you make an early settlement of your loan? Never agree to a loan until you have the answers to all of these questions. There are many approaches, such as skiptracing, used to collect debt today, so never take what you cannot afford.
- How does the application process work? – Assess the company’s application process. What documents will you need to hand over? How is the application handled, i.e. is it online or do you have to visit the company’s premises? Is it easy to understand?
- How long will it take for you to receive your money? – A lot of people opt for logbook loans because they are in need of quick cash. A quick approval can never be guaranteed. After all, every application is different. One may be quickly approved, another may be more troublesome. However, you should see how long it takes the company to deposit the money into your bank once your application has been accepted.
- Can you keep your car? – Last but not least, you should always ask this question just to be sure. A company should never take your vehicle! Therefore, if a company tries to do so, you know they are not legitimate and you should look elsewhere for your logbook loan. A lender only has the right to take your car if you fail to meet the terms you have both agreed upon in the contract.