Any novice businessman is faced with such a difficult question as finding money. Without them, it is impossible to rent premises, hire staff and buy equipment. Naturally, if the available funds are not enough to open a company or implement a project, then it is better not even to get down to business. In addition, there should always be some contingency margin. There are several options for getting money on time, these are all kinds of banks, microfinance organizations, credit communities.
Any novice businessman is faced with such a difficult question as finding money. Without them, it is impossible to rent premises, hire staff and buy equipment. Naturally, if the available funds are not enough to open a company or implement a project, then it is better not even to get down to business. In addition, there should always be some contingency margin. There are several options for getting money on time, these are all kinds of banks, microfinance organizations, credit companies.
A characteristic feature of each such financial institution is that it is very difficult to get money for business development. First of all, you need to convince that it is profitable, and in the future, the debt will certainly be paid off. Not everyone succeeds in this, since loans are issued only for simple and understandable projects. In addition, it will not be very useful to divulge information about what exactly is planned to be done, since there are always competitors in business. In this case, the pawnshop will be the only salvation. For those who have personal transport, this is the best way to get money quickly and easily.
The car pawnshop does not take into account the credit history in any way. It only takes a few hours to complete a contract and receive money. All you need is to provide a vehicle, a technical passport and an identity card. This option is perfect for those who urgently need money.
Disadvantages of an auto pawnshop
Despite the fact that car pawnshops have many advantages over banks, many refuse their services. It must be remembered that in some aspects, getting a loan from a pawnshop is not as profitable as it might seem. First of all, it should be noted that the interest rate is much higher here. As a rule, in car pawnshops, a daily rate is set, not an annual one. It can be about 0.3-1%. Such a small figure attracts customers, but in terms of a year it is already 100-300%, and sometimes even more. Therefore, the overpayment on such a loan will be very large if you have to borrow money for a long time. As for banks, the annual interest rate here rarely exceeds 30%.
A large overpayment in a car pawnshop is caused precisely by the fact that almost all loans are issued for a short period. Almost all of them are paid off in less than a month. In order to make a profit, an organization needs to set high rates. In addition, storage of transport, which is pledged, requires high costs. Like any other pledge, the car can be transferred to the ownership of the pawnshop if the terms of the contract are not respected. Therefore, if it is not possible to pay off the debt in time, then you can lose the pledged vehicle. It should be borne in mind that in this case the car is estimated at about 70-80% of its real value, and it would be much more profitable to just sell it.
Thus, the pawnshop is suitable only for those who need money urgently and for a short time. If the likelihood of unsuccessful implementation of a business project is too high, then it is better not to risk it, as you can lose your car
