Collateral Based Loans

Collateral is something that is used to secure a loan. You put collateral up when securing a loan so if you cannot afford to pay back the lender, they can sell the equipment and get their money back. Collateral makes it possible to get large loans. When you pledge collateral, the lender takes less risk and can offer you a better rate.

How Collateral Works
Collateral will be required when the lender wants some assurance that they will not lose all their money. If you pledge an asset as collateral, your lender has the right to take action (if you stop making loan payments) and take possession of the collateral you put up to secure the loan. They will then sell the collateral and use the sales proceeds to pay off the loan. Lenders would prefer to get their money back and would rather not have to bring legal action against you, so they try to use collateral as a safeguard.

Requirements:

– Collateral must be a Commercial Property with at least 100k in equity in the property;
– Minimum revenue must be 20k monthly;
– 4+ months in business
– No minimum credit score required.

If you have any questions about collateralized loans please don’t hesitate to contact one of our friendly and knowledgeable funding specialists.

SBA products typically have a longer turnaround time for funding, so if you would like to go this route, please be conscious of your deadline in which you need the funding. SBA offers competitive rates and terms, and you can virtually use the funds for any purpose. However the paperwork is lengthy, credit needs to be 680 plus and this type of financing may require collateral.

You will need the following documents to apply for this type of financing:

• Business and personal returns
• Financials (P&L, balance sheet, income statement)
• Business plan and debt schedule
• Photo identification and void check

What you will need to Qualify

• 1+ year in business
• 650+ credit score
• $15,000 + in monthly revenue

If you think that this type of financing might be for you, go ahead and click on the apply now link and start the process. Complete the application form and submit initial bank statement documents. If you are a candidate for this type of financing, you will be advised shortly after submitting your information.