Assets That

Can Be Loan

Collateral

There are major purchases that call for loan applications.

Some easily apply for one, while others debate first if it is

the right choice at the time. The issue often arises from the

possibly higher interest rate, but lenders crunch numbers

before coming up with a figure.

Unsecured loans – or loans without collateral – merit high

interest rates because the lender would not have anything to

leverage should the borrower fail to pay the amount. This is

the reason many go for secured loans, but they often ask

which particular asset to provide the lender.

Here is a list of properties that could be used as loan

collateral.

Home equity

The property of the debtor is a highly valuable item.

Legitimate property owners can consider applying

their home equity to lenders for a quick supply of

cash to address whatever need is present.

Vehicles

Personal automobiles could possibly secure

a loan, but business owners are free to

deposit any of their company vehicles as

collateral. This is applicable as long as

there are no liens on the cars and the titles

are clean.

One option is securing a title loan in Utah.

In this setup, the lender takes the title or

the pink slip of the vehicle, provides

money, and lets the debtor keep the car.

With this offer, the owner does not

surrender the vehicle itself, which means

there is still something to use even if the

title would go to the lender.

Title loans are also ideal for luxury vehicle assets such as ATVs and snowmobiles, as some

lenders give higher amounts for these machines. They may request to keep the vehicles for

the period of loan repayment. As for regular cars, the title alone would suffice.

One option is securing a title loan in Utah. In this setup, the lender takes the title or the

pink slip of the vehicle, provides money, and lets the debtor keep the car. With this offer,

the owner does not surrender the vehicle itself, which means there is still something to use

even if the title would go to the lender.

Business inventory

For businesses, most assets are possible collateral.

A dressmaking business could leverage the value of

the fabrics in their warehouse to secure a loan. The

same principle also applies for business equipment

such as desktop computers and copiers.

There are many options available when it comes to

finding quick cash for immediate needs. Loans are

always an option, and to convince the lender to

grant it, these are assets borrowers could look into

during the application.

Resources:

http://www.utahmoneycenter.com/title-loans/

http://www.bankrate.com/finance/home-equity/what-home-equity-debt-is-1.aspx

http://www.inc.com/guides/201101/5-tips-using-collateral-to-secure-a-small-business-loan.html