“Life is full of problems. In life, you’re either recovering from a problem, in the midst of one now, or one is coming. But, every once in a while, life gives you a reprieve from your problems. It’s called a crisis.” – Brian Tracey
Have you reached the point in your business that Brain Tracey notes in his above quotation? If so, how do you solve your financial crisis? On the one hand, it’s nice to know that your business’s financial crisis is not unique to you or your business. However, on the other hand, I believe that it is far better to spend your time considering ways to work your way out of your financial crisis.
SMEs (Small Medium Enterprises), Car Title Loans, and financial crises
Before we look at how you can employ a car title loan to solve your business’s current financial crisis, let’s look at the definitions of some of the terms that are pertinent to this discussion:
Small Medium Enterprise
An SME or micro enterprise is a business that employs fewer that a given number of employees. Small businesses employ less than 50 staff while micro enterprises employ less than five employees. This fact entitles you, as the business owner, to receive specific benefits from the government such as tax breaks, etc.
Title Loans
Car title loans Sacramento are small loans where the borrower’s vehicle title is used as collateral for the loan. For example, should you apply for a car title loan, the financier will take the original copy of your vehicle’s title deed as well as a working copy of your car keys as the guarantee that you will repay the loan. If you are unable to repay the loan, you will then forfeit your vehicle. The financier will sell your car to recoup the loan amount.
Financial crisis
According to the FinancialDictionary.net, a financial crisis is a “term commonly used when an individual finds themselves in an unsustainable financial lifestyle, whereby their debt far outweighs their income, and therefore they stand to lose assets, such as homes.”
Utilising a car title loan to overcome your financial crisis
Therefore, if you are a small business owner and you are facing a current financial crisis, one of the best ways to get through the crisis is to apply for short-term finance. It would be remiss of me not to point out that the interest rate on a title loan can be up to 300% per annum. However, as it might be the only loan source that you can get, you will have to apply for a car title loan as a form of bridging finance.
Final words
I believe that not only is the purpose of a short-term loan to help your business survive a crisis, but it is also equally important to make sure that you generate enough income to repay the loan and to keep your business running as cost-effectively as possible.