It’s something unheard of, but tough times call for tough measures, don’t they?
Rob Ribeiro, CEO of Xcelsior, a registered financial services provider, revealed that his organisation had noticed a trend indicating a massive demand for short term loans.
According to Ribeiro, the trend has been driven by the current financial constraints which have made it increasingly difficult to obtain cash, especially via traditional methods, like bank loans,
“We experience a massive demand for short term loans” said Ribeiro. “We have offered loans against motor vehicle assets – cars, trucks, bikes and even motorised sports vehicles like quad bikes – that are used as collateral.”
Well-known economist, Mike Schüssler, said the development should not be surprising.
“Unconventional as it might be, the practice of lending against moveable assets can help businesses stay in business longer and pay employees and suppliers.
“At present many small and medium businesses struggle to get normal finance and the method of asset based lending can help overcome cash flow problems,” he said