5 ways a title loan might help your business
There may come a time when your business is in need of financial assistance. Sadly, not all businesses qualify for traditional business loans, nor are the repayment terms of such loans always favorable. It’s only natural to feel stressed about how few options are available, but you’ll be pleased to know consumer credit is typically one that is. If you’re not yet sure if a title loan is right for you, here are a few of the many ways it might help.
Pay your employees
Sometimes, late customer payments or a period of low sales means you’re left short. By accessing online title loans and putting a business or personal asset up as collateral, you might be able to secure enough short-term funds to pay your employees for their hours of hard work.
You can then make regular payments to the loan provider while still retaining your valuable team. Once your late customer payments come in or sales pick up, you might be back in a strong financial position before you know it.
Cover your rent
Even though the property market is cooling, residential and commercial rental prices are still increasing. Nationally, rents rose 11.3% in the 2021-2022 period, with inflation touted as one of the leading reasons.
If you’ve experienced a rent increase or simply don’t have the funds to pay your rent in full, a title loan might be the answer you’re looking for. Most loans are approved quickly, meaning you don’t have to worry about disappointing your landlord with late payments.
Purchase new stock
You have to spend money to make money, but that can be challenging if you’ve run out of funds to put new goods on your shelves. Through increased prices or other expenses, you might have encountered the unique predicament of not being able to remain operational without requesting financial assistance.
Title loans can often solve that problem. As they are designed as a short-term solution, you can borrow against an asset, stock up your store, then sell your goods to cover your repayments and other business expenses.
Cover a one-off expense
Life as a business owner can be unpredictable. Even when you’re managing your business-related costs just fine, you might find yourself unable to cover something you haven’t budgeted for, such as a shop repair or customer refund. Rather than putting off the payment until you can factor into the following month’s budget, cover it now with a title loan and spread out the repayments.
Invest in new technology
Technology can assist a business in many ways, such as making everyday operations more efficient and improving team productivity. However, not every business owner has money set aside to make such investments, even if they might result in increased productivity.
When you wish to invest in new software, hardware, or programs, consider the value of a title loan. Business improvements with profit potential shouldn’t have to wait until you’ve saved enough money to cover them up front.
Title loans aren’t a traditional business funding choice, but that doesn’t mean they aren’t suitable in many situations. If you’re a business owner looking for consumer credit options to cover your costs, you might find that title loans meet your needs.