Options Financial Services has introduced a new lending product, Car-for-Cash, which enables vehicle owners to unlock the financial value of their automobiles without giving up possession of their cars. The facility was unveiled on Friday at the Radisson Blu Hotel, Ikeja, Lagos. This product is designed to provide individuals and businesses with access to liquidity by using eligible vehicles as collateral.
The Car-for-Cash product comes with an interest rate of 4.5 per cent and was developed in response to the growing demand for flexible financing options among Nigerians seeking funds for business expansion, working capital, urgent financial obligations, and other personal needs. According to the Chief Executive Officer of Options Financial Services, Habeeb Fasuyi, the initiative reflects the company’s commitment to developing innovative financial solutions around the existing assets of its customers.
The Car-for-Cash product provides an alternative to vehicle owners who may need access to funds but are unwilling or unable to sell their automobiles to raise money. Under the arrangement, eligible customers can use their vehicles as security for financing while retaining the use of the assets for their everyday activities. This allows borrowers to continue using their cars without disruption.
The development of Car-for-Cash comes against the backdrop of increasing interest in alternative credit facilities, particularly among individuals and small businesses seeking financing outside conventional lending channels. Asset-backed lending has emerged as an important component of the financial services ecosystem, enabling borrowers to leverage existing assets to meet immediate funding requirements.
For vehicle owners, the Car-for-Cash model potentially transforms an automobile from simply a means of transportation into an asset that can also provide access to liquidity when needed. This new lending structure is expected to serve customers seeking short- and medium-term funding without necessarily disrupting their daily use of their vehicles.
Fasuyi noted that the company was focused on creating financial products that respond to changing customer needs while expanding access to credit through innovative lending structures. The company aims to provide more flexible financing options to Nigerians.
The launch of Car-for-Cash by Options Financial Services is a significant development in Nigeria's financial services sector, offering vehicle owners a new way to access funds. With this product, eligible customers can now use their vehicles to secure financing while still using their cars for daily activities.
Key points
- Options Financial Services launches Car-for-Cash with a 4.5% interest rate.
- The product allows vehicle owners to access funds without selling their cars.
- Car-for-Cash is designed to provide short- and medium-term funding.
