A title loan is a great way to secure money on an urgent basis. That, too, without the usual hassle of signing piles of paperwork. Essentially, title loans are designed to offer you quick cash at the price of your automobile, which typically serves as collateral for the loan. However, as amazing as they are, title loans can have various ups and downs during the process.
Before putting your beloved truck on the line, take a look at this blog to learn more about the pros and cons of commercial truck title loans.
Pros of Commercial Truck Title Loan
One of the biggest reasons why people opt for a title loan is because they don’t have to go through the mundane process of a traditional loan. The rules are much more flexible, and lenders can always be negotiated with. Moreover, as long as you know your rights and have the correct documentation, you can get the most out of commercial truck title loans. Here are some of its biggest benefits:
Super Fast Approval
Rather than waiting weeks to hear the results, title loans offer instant approval. Depending on your preferences, you can apply for the loan online or in person and get approved within the same day. In fact, you can walk away with the loaned money in just a few hours.
No Credit Score Check
If you have a low credit score, you already know how difficult it is to get by on a daily basis, especially when making a big purchase. Although title loans don’t require any credit checks, so you can easily get a loan no matter how bad your score may be.
The reason why people avoid taking out a loan from the bank is due to their extensive paperwork. Even though it is more of a security check, all the extra steps can make one give up. Commercial truck title loans are far easier to deal with. You only need a few documents to qualify for the loan altogether.
Flexible Repayment Methods
When it comes to repaying the loan, title loans are great. They allow enough flexibility that you can choose how to pay back the loan. For instance, if you want to pay all at once or participate in monthly installments, it’s all up to you.
Cons of Commercial Truck Title Loan
Now that you’re familiar with all the benefits, let’s look at the cons of a truck title loan.
Sadly, a huge drawback of commercial truck title loans is the large sum of interest rates. Depending on the lender, they might charge you more interest than the repayment itself. This is why researching beforehand is vital.
Short Repayment Timeframe
Despite being flexible, title loans can have a very short repayment window. Truck title loans are especially hard to negotiate, as most lenders rely on being repaid in 30 days, max.
Risk of Repossession
The scariest drawback of a title loan is the risk of losing your truck. Since it acts as collateral, failure to repay by the time set by the lender can result in you losing your automobile.
Want To Know More?
It doesn’t matter what the pros and cons of a commercial truck title loan are. Because, at the end of the day, it still offers a way to get quick cash in a short period of time. So, if you own a commercial truck and want to take out an urgent loan, contact Advantage Finance LLC today at (281) 410-5337 for more information.