As more and more business owners continue needing loans, banks and loan companies will need a type of collateral to ensure payments are made. Collateral typically includes an owner’s house, but not all business owners are homeowners. To combat this issue, automobiles can also be used as collateral. When taking out a loan, a business owner can add the bank or loan company as a lienholder. In order to do so, they must go to the DMV and add the bank or loan company as a lienholder, which can be time-consuming and inconvenient.
“DMV developed the Electronic Lien and Titling (ELT) Program to hold lienholders’ title information in an electronic format. This system uses electronic titles in place of paper titles to reduce handling, storage, and mailing costs.” -DMV
In the ELT program, liens, and titles for vehicles, vessels, and mobile homes are kept digitally in a database rather than on paper.
“To make a lien on a title electronic, a lienholder files paperwork with their state DMV office just as it’s been done for many years. The one variation is that now an identification number known as an “ELT ID Number” is included on the lien filing paperwork.” -USA ELT
Although the process is quite simple, there are many benefits to an online transition. This program has helped prevent and reduce fraud, secure online storage, and created easier lien management. It benefits clients by making the process of adding and removing lienholders simpler for its user.