Kim loves baking and had always wanted to open up a bakery shop one day. So, after graduating from one of USA’s top economic business schools with a degree in Economics and Business Administration, she finally thought it was time to give her dream a chance. The difficult part started when she approached a local bank for a loan. Traditional banks generally prefer lending money to businesses who have a sound operating history. This means when an entrepreneur applies for a loan, banks scrutinize in detail both your personal and your organization’s history, balance sheet, business credit, revenues and other information like equity contribution. This is why most young entrepreneurs like Kim find it hard to get a loan to begin their own start up. Even if Kim had produced the necessary credit scores, her bank would require her to guarantee the loan with collateral (such as real estate property) in addition to evidence she would be easily able to repay the total loan using alternative income not from her start up business.
That is what most traditional loans do…
…because the primary concern of a banker is timely payment of loans and that is why, the cash flow management of your organization is their utmost concern in order to ensure that you can make the timely loan payments including the interest.
So how did Kim’s story end?
Happy? Yes. But not through traditional means. After wandering from door to door of several banks, Kim was disheartened and finally decided to give up her dream. One sultry evening, on her way home tired and disheartened, she walked down the path, passing her garage where her old college car sat shaded from the scorching summer heat. And there it was – the bling! The moment when she felt the urge to shout out loud, ‘Eureka!’
Kim ran inside her home and sat down on the sofa with her laptop. After 5 minutes, she was sitting down relaxed and pleased, grinning at herself. Why?
Let’s rewind the moment of Kim’s ‘Eureka’ moment, shall we?
“…passing her garage where her old college car sat shaded from the scorching summer heat…”
It suddenly strikes her that she could put up her car as a collateral and apply for a title loan. Title loans are short term loans a borrower can apply for, in exchange of the title to her old car. But the striking feature of borrowing a title loan is that she can keep driving her car and easily get the car title back once she returns the total amount due on her part. She will also get a loan without having perfect credit history. She can apply online for a loan and receive money within 24 hours. This is that split second ‘eureka!’ moment that finally led Kim to realize that she can accomplish her dreams. She now successfully runs a bakery shop and has collaborated with one of the leading bakery brands to open a chain of her brand’s bakery outlet in selected cities in the coming year.
Kim’s Testimonial to this particular title loan company:
“Thank you for helping me out during my tough times and finally helping to make my dream into a reality. The title loan team was extremely helpful by outlining a complete map on the loan, the cost and what to expect. So I’m glad I made the loan.”
Lessons to learn from Kim’s story –
Never Stop Dreaming…there is always a back up somewhere.
Who said old cars are useless? Old is always gold!
Moral # 3
If bank lenders can’t help you out, title loans are there.
Untold Moral # 4 – Always go for reliable title loan lenders when you apply for one.
To help you out, here are some important features of car title loans that you need to know before you approach a reliable auto title loan lending company:
- No Additional Paper Work Needed
Title loan is regarded as the fastest loan ever! This is because, unlike traditional loans; a car title loan does not come with any huge paper work complication. The process takes only a few minutes and you can drive away with your car along with the cash in hand in many cases, in less than 24 hours.
You can apply online, then all you have to do is insert two to three fields regarding your vehicle’s information and then click to apply. You would get an instant call from the company, where you would get instructions regarding the procedure further.
- No Credit History Check Required
The loan has been designed especially, to help out customers with a bad credit history. A business start up does not need to worry about his/her eligibility condition because car title loans do not require any financial history documents. This is because your car acts as the collateral. When you are on the loan term with the lender, you have to submit your car’s insurance that will be returned to you once you have completed paying back your lender the complete amount with interest. This is done as a kind of necessary precaution on the part of the lender to safeguard against any loss, in case your car meets with any damage during the loan period. The lender can then acquire the total value by selling you car insurance. But that can happen only during extreme situations. You can get to use your vehicle though during your loan period.
- Not All Title Loan Companies Follow The Same Policy
Hence, the appropriate step would be to compare the terms and conditions as presented by different title loan companies. You would notice that certain lenders offer comparatively lower interest rate than others. You would also get to know how long has the firm been in this business and the preferable loan term. Make a comparative study and then decide where to apply. There are also certain direct title loan lenders who believe in strong borrower-lender-relationship and come up with special offers, like a special ’30 day money back’ guarantee for borrowers who are not satisfied with their line of credit. You would not want to miss out such an opportunity in case you come across such a title loan lender, do you?
Every business entrepreneur needs to come up with unique strategies that will help his/her business grow to a new level. If you run into trouble and cannot acquire a bank loan, then title loans are another option you can use. Kim had done it and we wish her success in every step ahead.
Author Bio: Cayla Silverstone is the senior editor of a reputed newspaper company and has over 10 years of experience. She also specializes as a features writer and is the co-founder of a blogging site that writes on title loans and other financial matters.