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Collateral Loans for Small Businesses

Collateral Loans for Small Businesses

Are you an entrepreneur, or are you looking to jump-start your own business? If so, you’re probably wondering how to acquire necessary funds to get off the ground, or how to get additional funding to scale your business.

While there are several established ways to get funding, in this blog post, we will discuss a type of loan called “collateral loans” and how it can be an option for small business owners.

A collateral loan (often referred to as a “secured loan” or “asset-backed loan”) is defined as a commercial loan in which an asset is pledged as collateral that the lender accepts as security for a loan.

Basically, with a collateral loan, the lender will not examine your business’ and personal finances such as personal credit history, equity contributions, balance sheet, and other criteria used for a traditional loan. Collateral loans, such as the type Pawngo offers, can be completed by using an existing asset you have as collateral, in exchange for the principal (the money loaned). When the loan is paid back, the borrower will re-acquire the asset. Simple and straightforward!

An important benefit for using a collateral loan is that the borrower may qualify for a larger loan amount, lower interest rates, and a longer repayment plan than traditional banks may offer. The borrower has to send in qualifying information for the asset he or she is planning to use as collateral, i.e., photo, asset details, etc. When Pawngo receives that information, they will make an initial evaluation of the asset, and give an estimated loan amount. Once the item is shipped and the final offer accepted, the borrower will receive the funds within minutes and have the cash it needs to grow the business. It’s that easy.

You can unlock the value of existing items to get the cash you need as we accept a wide range of assets like:

● Luxury Vehicles: Cars & Motorcycles.
● Luxury Watches.
● Fine Jewelry & diamonds.
● Gold and precious metals.
● Designer accessories.
● Other auction quality collateral

Collateral loans can be useful for small businesses looking to get funding for their projects FAST. While some lenders may often require extensive and lengthy credit checks, secured loans are an efficient way to acquire larger loans and have a very flexible contract.

Call us today at 1.866.499.2363 to find out how we can help you grow your business!