Recent personal loans Q&A
What are personal asset loans and how can they help me?
Get a loan secured against your possessions
If you need money quickly, and have been refused a bank loan or other forms of borrowing, then you might consider personal asset loans as one source of income in an emergency. If you have never heard this term used before, then you may be asking yourself ‘What are personal asset loans?” In their simplest form, these loans are secured in the form of personal assets such as watches, jewellery and fine art, for example. The loans are worked out based on a percentage of the assets’ value. So, for example, you would not get the full price for a vintage car, but might be able to get a loan for some of its value for example 50% of it’s current sale valuation.
Why personal asset loans can be a good idea
Being refused for bank loans, or other types of regular loan, can affect your credit history and may make it harder to get loans in the future. You could go the other way, and attempt to get a loan from a short-term lending company, but payday loans and similar quick financiers tend to have a poor reputation. Personal asset loans are a middle-ground between the two types of lenders. On the one hand, there are no credit checks, or any kind of background or employment checks, but the lender pledges his or her personal assets to the lender in the same way that a mortgage or car loan would have the titles to these items pledged. With payment, the borrower can recover their items and they may also be able to increase their credit standing after the transaction is complete.
How can personal asset loans help small businesses?
Assets loans for business use
Small business owners often struggle to get the funding they require to grow their business. In fact, sometimes they struggle to raise any money at all to even get the business going in the first place. Banks are unwilling to invest in small companies, no matter how worthwhile or exciting the business idea is. In these cases, it makes sense to try another method to raise the money needed, and a personal asset loan is one way to get the company off the ground. Businesses need assets in order to grow, and so borrowing against things that you already own, from company computers to the company’s transport system, can be the only chance you get to raise the money you need.
If you are interested in getting a personal asset loan for your business, then there are several types of collateral that you can borrow against. Firstly, there is the property, including warehouses, land or offices that are the main headquarters of the company. This works much the same as a mortgage. If you don’t have business premises yet, then you might consider other alternatives, such as equipment, which can cover anything from company cars to manufacturing or construction machinery, right down to tools, company phones and anything that the business owns outright.
You can also get personal asset loans against your own valuables, which might include sports collectables, cars, gold items or artworks. You may also get a personal asset loan on money which is owed to your account from items already sold. This can work fine if you think that you will be able to claim that money back, and in fact lenders often look positively on borrowers who are able to show that companies owe them money and will be able to pay soon. However, the willingness of the lender to loan money against money owed will depend on how they assess the company who owes the money, and the likelihood of them paying within the set time frame.
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