Title Loan
This is a loan in which the title of the borrower’s collateral is required by the lender. The borrower must have free and clear title to the collateral.
For example, if a car is used as collateral, the lender may request that they hold the proof of ownership for the car before issuing the loan. In some cases, the lender may place a tracking device on the vehicle to monitor its location at all times.
Title loans can be processed and approved very quickly because the borrower’s credit analysis may not be needed since the creditor has sufficient collateral in his possession.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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