Corporate Car Collateral Loan – Use ORCR of Company Car to Get Cash
Car loan can take different forms in the Philippines. Although I must admit that many Pinoys have the notion that car loan is mostly for those who are interested to buy a car, there is another form of it. Today, I am going to discuss the possibility of getting loan by using the car title or ORCR (official receipt / car registration receipt). In this case, its going to be a car that is owned not personally by anyone but by a company. I will also be extending this discussion to individuals who own a company-financed car who want to use it to file for a loan. Here, the name who is listed as the owner is the company name itself and not the individual. This company owner on the other hand may either be of single proprietorship, partnership or corporate. Let me call this type of car collateral loan as corporate car loan.
A couple of days ago, I had this client I never thought is actually going for the corporate car collateral loan application. Based from my initial conversation interview with this applicant whom we will name as Mr and Mrs Aparece (not their real complete names), they have a Toyota Vios 1.3 G 2013 year model which they wanted to use as collateral to apply for loan. Asking if the car is fully owned (my usual first question with clients) and not under mortgage or still under payment plan with a bank or financing company, the loan borrower reiterated that they had it bought cash. My second question was if the original ORCR is already in their hands and under whose name, the client answered it was under a company’s name. That company which I learned later on was a family corporation with an updated SEC registration and business permit plus GIS and other needed papers to allow them to use the car as collateral to get cash.
Later on during the initial interview and conversation, I learned that the car was actually part of a contract with one of their company clients and was actually bought cash but became part of a finished contract agreement that the original ORCR will be handed to them upon finished contract. The couple, Mr and Mrs Aparece had immediately had the encumbrance notation removed from the Registry of Deeds (RD) and they already have the new original ORCR without any liens and pending encumbrance from the LTO. This is a sign for me to know that this client had clean documents and can actually be approved of their car loan application in 1-2 days. If by any chance, any of you find this post and you have the same or similar case and you wanted to apply for additional funding out of using your company car as collateral, please don’t hesitate to contact me, your qualified, professional loan consultant for Auto Loan Philippines. Below are some of the pointers to see if you can qualify to apply for the “corporate car collateral loan”
5 Pointers To Qualify for Corporate Car Collateral Loan
- Car must be fully owned and not still under a mortgage plan. It must either be bought cash or you already have the original ORCR and have paid it in full staggered monthly payments thru a bank or financing company. Those with balance cannot qualify for car loan takeout or car loan refinancing for reasons of documentation and requirements.
- The car can either have been financed by any company under an individual name or under a company but must have already been fully paid and original ORCR is already on hand.
- If ORCR is still with encumbrance notation (with “encumbered to” markings below the lower left portion of the CR), you need to submit copy of the PN (promissory note) and release of chattel mortgage.
- If the CR ownership or car ownership is by an individual, the individual may apply personally but if it is under a company name, the loan applicant or borrower must secure papers and documents to submit (which are listed below) in order to qualify.
- If you have a company financed car, you must secure a copy of the contract of payment and full payment receipt or SOA (statement of account / history of payment) from your company or the company who paid / financed the car under the individual or benefactor’s name. On the other hand, if you have a car where the owner(s) listed as ORCR shows is a company, you must secure secretary’s certificate allowing you to use the car to apply for a loan addressed to the company provider of your choice. You will also be obliged to submit proof of incorporation or ownership of stocks in your company.
Corporate Car Collateral Loan Requirements
- Completely filled up car loan application form. You can download and fill up here or fill up our client info sheet below.
- Original and photocopy of latest OR CR (do not submit original copy to anyone until release of loan)
- Copy of GIS and Articles of Incorporation where incorporators are listed to see your name as one of the investors.
- Secretary’s Certificate with signature of incorporators – stating that the company is allowing in your behalf to apply for loan using the company car as collateral to get cash.
- 3 months latest company bank statement or financial statement or your 3 months latest personal bank statement.
- Encumbered vehicle – owner must provide OR CR with encumbered notation, PN or promissory note plus chattel mortgage release from bank or financing company
- Original proof of billing (both your personal and company bill) (only electric and water bill allowed) (may not be under your name but must have same address as valid IDs)
- TIN ID or ITR or any proof of TIN of the loan applicant or the company
- 2 valid primary or government issued IDs
- Car must be 2000 year model or newer
- Borrower must have source of income as capacity to pay guarantee or provide nearest immediate family member with income (subject for company consideration and approval) – work, business, property for rent, freelance job with voucher or remittance. If you are an individual owning a company financed car that is fully paid, please see list of additional requirements below.
- (if w/ work – provide 3 months latest payslip and COE) (if COE is not immediately available, you may opt in to have us call your HR to confirm employment and salary)
- (if w/ business – submit photocopy of DTI permit (single proprietorship) or SEC registration (corporation) / mayor’s permit and latest original 1 month bank or checking account statement)
- (if w/ property for rent – submit lease of contract photocopy)
- (if with remittance from abroad – provide 3 months latest bank statement or 3 months latest remittance receipt whichever is the mode you receive your monthly cash either thru bank or money remittance centers)
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