Can You Finance a Long-Term Asset With a Short-Term Loan?
Whether or not you can finance a long-term asset, aka noncurrent asset, with a short-term loan is a question that not many people understand the answer to. However, the answer is yes. Yes, you can. With short-term asset-based financing, you can fund plenteous amounts of purchases, most of which you may have not even realized. Though the process to do so is not as hard as one may think, there are different variables to understand.
Long-term investments are assets that you would hold for an extended period of time to receive the highest return on investment. This may include a piece of property, company equipment, or stocks. If you plan to hold an asset for longer than five years, that asset is typically considered to be a long-term investment. Though noncurrent investments are a great way to grow your business, they can become costly to attain.
Finance Your Investment
The good news about costly long-term assets that there are simple methods for you to finance them. Short-term solutions, such as asset-backed loans, are a great way to do so. An asset-backed loan is a contract in which you offer the lender a luxury asset in return for the funds needed to make your investment. Over a period of time, you will pay back the lender where your asset will then be returned to you.
Some of the benefits of obtaining short-term loans online include:
1. The ability for your company to grow rapidly without the runaround of conventional loans.
2. Existing debt does not affect whether or not your assets are accepted.
3. The funds can be used to help your business get through a financially rough time.
If you plan to use your assets as collateral for obtaining a short-term loan online, you are in for a time-saving, non-complicated experience. It has never been easier to fund longer-term investments as it is right now. Most of the accepted assets used for collateral can be found around your household. Some of which include:
- Diamonds, Jewelry, and Luxury Watches
- Gold and Precious Metals
- Designer Handbags and Accessories
- Musical Instruments and High-End Music Equipment
- Apple Products
- Fine Arts and Collectibles
Of course, other luxury items could be used for an asset-based loan as well. Therefore, it is essential to speak with a professional to find out whether your item will qualify or not.
Get A Short-Term Loan Today
It is possible to obtain what you are looking for, whether the investment is for you or your business. You just have to know how. For more information on obtaining short-term loans to pay for five-year-plus investments, contact Pawngo today!