Establishing a stable business start-up is one of the hardest phases that an entrepreneur has to go through. The disadvantage of running a business start-up is that, one has to incur heavy expenditure like renting a place, charges of registration, promotion, signage, equipment and others even before he has begun to earn any revenue. On the other hand, traditional banks also tend to look down upon these business start-ups, since maintaining their accounts turns out to be very expensive compared to the income profitability that is incurred, owing to limited number of customers. Moreover, traditional banks tend to prefer paying loans to businesses that come with a stable operating system, which is why loan applicants are made to go through detailed scrutinization of information like the company history, business credit, balance sheet, equity contribution and others. While this might turn out to be difficult especially for business start-ups, in such a case it seems logical to approach companies offering title loans that are oriented to provide financial assistance within the small scale business sector.

How Are Title Loans More Advantageous Than Traditional Loans?

To understand this, here is a list of 4 simple benefits a business start up gets for a car title loan -



#1- Quicker To Apply

Unlike the traditional bank loans, where an applicant has to go through all those paper scrutinization work, a car title loan does not ask for any document proof and hence is simple and quick to apply. All you have to provide is the title of your vehicle, which will act as a collateral that the lender can put to use in worst cases when your car meets with an accident or when you are unable to repay. If someone is applying online, then the information that one has to provide are details regarding his/her vehicle. Your loan would get approved within 24 hours after submission of the application form, unlike the traditional loans that take weeks to get the entire process complete.

#2 – You Can Continue To Use Your Vehicle

Even though you have to submit the title of your car to the lender, that does not debar you from driving it. You can drive in with your vehicle, get it checked by the company in order to assess the value of your car , get approved for the loan amount that you ask for and simply drive out along with the cash in hand. Though you have to deposit the title of your car and a separate set of car key to the lender, you will receive them back once you are done with your final repayment.

#3 – Cheaper Than A Traditional Loan

The interest charged by a title loan lender is comparatively cheaper than a traditional loan. This is because the lender treats your vehicle's title as a value that is secured to the car. This provides the lender with some layer of security and hence they don't find any need to charge the borrower with higher interest.

#4 – Easy To Repay On Time

When someone applies for a loan from a car title loan lender, he/she is given a full length explanation in detail with regard to the entire process, the rates, the average loan period, etc. The borrower would know when is his next due date and pay back the loan accordingly. It is easy to repay your car title loans with quicker strategies. Most borrowers repay the total loan amount as soon as the next pay day arrives. However in some cases, the amount borrowed is large and you might need several paydays to repay the total amount. There are some title loan companies that come with a flexible loan term period and you can also renew your loan term if needed.

Starting Business With Title Loans

You can apply for a title loan now and start your business within 24 hours without any haste. Starting a business does not necessarily mean you need to have big bucks to fund yourself, you can begin a start-up with as little as $5000 or even less than that. If you are looking for some advice here, then some of the ideas for your business start-up may include – virtual assisting, app development, book keeping, business waste consulting, etc.

But to start a business you need to have a complete plan of how to make proper use of the loan that you borrow. When your loan gets approved, it gets transferred automatically to your bank account.

Here is a step-by-step guide to understand how to utilize the fund that reaches your account -

Think about the type of business that you plan to run. Once you have decided on that, the next step that you need to decide is what kind of products and services would differ you from your competitors. This is the vital step to begin with for any business plan.

Understand the costs you need to incur. There are two types costs that you would need to spend – 1) Fixed asset and 2) Capital cost.

Fixed costs are those that an entrepreneur needs to spend on factors like the market research, the cost of finding the location, promotional cost, resource expenditure like wages, training and others.

Capital cost on the other hand is a one time expenditure that one has to incur on assets like property, transportation vehicle, inventory, etc.

Now that you know which assets you would have to acquire, it is time to allocate your expenditure. Try allocating your costs to each expenditure to get an overview of how much would you have to incur on a monthly basis.

Calculate your expenditure estimates to draw out a rough figure of the total amount. If the estimate turns out to be too much, then revisit your expenditures and look for ways to cut them down. See if you can curtail the expenditure of a thing or two by introducing new tools that will be cost effective and productive from the beginning.

Every business comes with its individual budgeting plan that becomes a part of the wider business plan. Smooth financial flow is an important part to ensure that your business is funded properly. If you need financial support to begin your start-up, then always go for sources where you require to meet the least cost and minimum credit needs.