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    Title Loan For Business Funding: 6 Things To Consider

    A title loan allows you to borrow from 25% to 50% of your car’s value, with your vehicle serving as collateral. While it’s not an ideal long-term solution for business funding, it can provide a much-needed cash infusion if your business is going through financial hardship or dealing with an emergency expense.

    Your financial needs may change as your company grows. At a critical point like this, you may need to re-align your financial needs. Some companies evaluate their finances by hiring virtual CFO services for consultancy. If your company is at that point where it needs a capital infusion, you might want to consider a title loan.

    What Is A Title Loan?

    A title loan is a type of loan secured by a car title, meaning that the borrower must repay the loan in full within a certain period. Title loans are typically short-term, lasting just a few weeks or months. 

    You may consider a title loan for business funding. However, you need to be sure you’re making the right financial decisions. You may click here for fractional CFO services to get expert financial insights and save your company from financial ruin. 

    What To Consider Before Getting A Title Loan

    A title loan could provide a short-term solution to a cash-strapped business. But before you take the loan, consider a few things:

    • Your Credit Score

    Generally, your credit score is an essential factor that most lenders look at. Credit scores allow lenders to judge your borrowing power and determine how much risk they’re willing to take by lending you money. 

    However, with a title loan, your credit score isn’t considered. You’ll likely qualify for a title loan even if you have a poor credit score. 

    • Compare Loan Terms Of Different Lenders

    The loan term is an essential consideration when comparing lenders. A lender’s terms will include how long the loan will last, the total amount, monthly repayment structure, the fees charged for origination, and other services. 

    You may also consider the interest rate you’re capable of paying and if you’re liable for higher rates.

    • Read The Fine Print For Hidden Fees

    Hidden fees can be a big problem when taking out a title loan for business funding. You may think you’re getting a great deal, but if you don’t read the fine print and find out other fees or obligations attached to the loan, you might be paying more than expected in interest rates and additional costs. The last thing you want is to end up having more debt than when you started.

    You can also ask the lender about any additional fees to determine all the fees before signing. If it seems they’re withholding information from you, it’s time to look elsewhere.

    • Know When You Can Get Your Title Back

    The lender will hold the car title until you pay the loan in full. The car serves as collateral for your loan. This means if you default on paying off your loan, the lender will repossess your vehicle. 

    The typical loan term for title loans is 30 days. At the end of the loan period, you must make a lump-sum payment, including interest and other fees. If you fail to pay on time, you might lose your vehicle. But once you’ve paid in full, you’ll get your car title back. 

    • Get A Reputable Lender 

    As long as you’re prepared for the financial consequences of getting a local title loan, it can be a great way to bridge the gap between small, short-term needs and larger, longer-term goals. But only if you find a lender that’ll be fair and honest with you. 

    A suitable title loan lender should be willing to discuss the risks and downsides of getting a title loan as well as other financing methods to increase cash flow, such as cutting back on unnecessary spending.

    • Consider Interest Rates

    The interest rate for title loans is higher than for other loans. The annual percentage rate (APR) can be as high as 300%! 

    However, interest rates are determined by the lender and not the borrower. So, if you have a credit score below 650, it may be challenging to obtain a loan at an affordable interest rate. 

    Conclusion

    Title loans can be helpful for business owners looking to get their hands on some extra cash. But as with any loan, a title loan comes with potential risks and downsides. Before applying for one, take the time to consider your options and ensure that getting one is right for your business.

    Disclosures

    DISCLAIMER: As our policy to make sure you know what we do and what are our limitations, we offer you these disclaimers. We are NOT A LENDER and we do not make short term cash loans or credit decisions. We are a referral service and work only with licensed lenders/brokers.

    We may act as the broker for the loan and may not be the direct lender. Loan proceeds are intended primarily for personal, family and household purposes. We do not offer or service student loans.

    *Loan amounts by the lenders vary based on your vehicle and your ability to repay the loan.

    *Since we do not lend money directly we cannot offer you a solicitation for a loan, except in the state of California. In all other serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans and Auto Title Loans are not available in all states and all areas.

    *Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan.

    *All lenders are responsible for their own interest rates and payment terms. TFC Title Loans has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

    *The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you.Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically larger loans or higher risk loans use a GPS.

    *In some circumstances faxing may be required. Use of your cell phone to receive updates is optional.

    *Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

    *Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

    *Trading Financial Credit, LLC dba TFC Title Loans, Car Title Loans California, Dineromax. If you are using a screen reader and are having problems using this website, please give us a call at 1-844-242-3543 for immediate assistance.

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