An asset loan can be a great way to get much needed cash in a crunch, but you have to be aware of the nature of the business before visiting your local lender. After all not all lenders come with complete transparency and professionalism like the guys over at Car Pawn Loan who specialize in vehicle based assets.
When securing an asset based loan you must keep in mind that the lender makes most of his income when you default on the loan. So if you are not going to make the repayment on time, you must contact them as soon as possible to negotiate a new deal, or else risk kissing your asset goodbye.
Another important item to consider is that this is not exactly the most regulated industry, it’s not banking for example. An asset loan company on Block A could be charge 10% interest over 30 days, whilst a lender on Block B could be charging 30%. You need to do a little homework before applying. This is really easy. Simply Google for lenders in your area and send them a description of your asset and ask for their interest rate. This is an easy way to not only compare loans but also get a feel for their customer interaction and service.
So, homework done and ready to proceed. Here is how it works. Take your asset and any documentation to your local lender. They will assess the asset for market, trade-in and resale value. They will then make you an offer and provide you with the legal documentation to complete. There is no background check and these loans do not affect your credit score. Be sure to read through the repayment terms and make sure the interest rate and turnaround dates are as quoted by the sales staff. If you are happy with everything, sign on the dotted line and walk away with your cash.