UK car and business owners have one more short-term financial advantage in their arsenal thanks to the flexibility of logbook loans. The product allows car owners to leverage the value of their vehicles to secure low-interest loans ranging from £1,000 – £50,000. It is a suitable option for business entrepreneurs and founders who need a quick cash injection to support the running of their business.
Below, we look at the alternative short-term loan phenom that is logbook loans, and how UK business owners can personally meet the eligibility criteria.
The Logbook Loan Application Process- An Overview
With application processing periods ranging from 2 to 24 hours after application verification and repayment periods ranging from 18-48 months as well as a Logbook Loans are very convenient to secure and repay. Successful applicants can repay by using logbook loan experts, Logbook Money’s secure online payment platform or by using a recurrent payment authority RPA. When going through reputable companies like Logbook Money, all the fees required are declared upfront so applicants are fully aware of what to expect from the outset.
All applicants for logbook loans undergo a detailed but confidential processing procedure designed to ensure that the specific company’s engagements with clients remain in line with the regulations that guide the UK’s financial sector. Primarily, applicants must be evaluated and deemed to be eligible in order to access the loan facility.
Who Qualifies for a Logbook Loan?
To qualify for a logbook loan, car owners must meet certain criteria, most of which relate to their ability to repay the loan as well as their ownership of the vehicle being used to secure the loan. Chief among those requirements is that the vehicle used to secure the loan must be free from financial encumbrances. In other words, there should be no other loan secured by the car.
Loan officers will request proof to ensure that each applicant is over 18 years of age and has the capacity to repay the loan. Applicants’ capacity to repay is measured by their employment status or their possession of sufficient income or benefits payments. For business owners, this proof could be records of the income generated by the business on a monthly basis. Additionally, applicants must prove that the car being used as collateral for the loan is legally owned by them. The V5 logbook should, therefore, be in the applicant’s name and the vehicle’s legal documents for road use should also be up-to-date.
Another criterion that the loan applicant must meet is exclusion from any past, current or pending debt order or declaration of bankruptcy. Business owners applying for this loan will also need to have a UK bank account to facilitate loan disbursement.
In the UK business community, logbook loans allow car owners to keep using their car while boosting their cash reserves at the same time.
