04/09/2020
If you need bridging finance to see you through a short-term cash flow problem, pawning your car – or another vehicle. Here’s why.
Fast access to cash
Other types of loans, including traditional bank loans, can take weeks to secure. You may need to complete detailed forms, find and submit supporting documents, attend an interview and wait for a lengthy approval process to be completed. Even once a loan has been approved, it may take a few days before it reflects in your account.
In the case of pawning a vehicle that’s in your name, you could have the funds you need in your account on the same day you apply for a loan.
No credit checks or invasive questioning
Pawning your car is an example of securing an asset-based loan. Because the asset (your vehicle) serves as collateral for the loan, the lender has no interest in your credit record, financial history or other financial information.
This means that if, like millions of other Filipinos, you have an impaired credit record, it won’t affect your ability to secure a loan. It also won’t affect the loan amount you’re offered, which will depend purely on the value of your vehicle.
You won’t be called upon to explain or justify your spending habits or your current financial situation. There are your business, not the lender’s.
Confidential process
With Kaio’s Quick Cash, the process of pawning your car is completely confidential. We don’t supply credit bureaus, financial institutions or anyone else with information about the transaction, which is purely between you and us.
You don’t have to sell
It’s never ideal to sell a large asset, like a vehicle, in a hurry or because a cash-flow situation is making you panic. This could mean losing out financially because of a rushed sale. Also, you might regret parting with a vehicle later, when you really need it.
An advantage of pawning your car is that once you’ve repaid the loan amount with agreed interest, your vehicle will be returned to you, in the same condition you left it.
