Frequently Asked Questions: On Collateral Lenders

June 23, 2012 by  Filed under: Loans 

Getting married? Having a baby? Investing in a house? Regardless of what reason you may have to need money quickly, a collateral lender can buy your items or provide you with a loan with your valuables as collateral.

But first, what’s collateral? In the most basic terms, collateral is a guarantee or pledge as a security for repayment of a loan. A collateral can be something valuable to you – no, not the lock of hair when your child experienced his first hair cut (those are believed to be priceless items *wink*) – but an asset or property.

Types of Collateral

There exists a wide range of assets you may use as collateral. Physical assets such as cars, homes, keepsakes, jewelry, precious metals, etc.

Lenders are taking a risk when they loan you money – a risk mainly because they don’t know for sure when and if you’re gonna pay, so collaterals come in useful to ensure you can fulfill your payment deadlines. It needs to be equal to both parties – they’re going to risk something, so much better you risk something too.

Here are some of the frequently asked questions lenders receive when they have clients who’d like to loan or sell their items to these upscale collateral lenders.

What kind of items are accepted for loan or purchase?

Just about all items of value are accepted. This consists of lending or purchasing items for example precious metals (gold, silver, platinum), diamonds, fancy, scrap, or estate/antique jewelry, auto titles like boat, rv, motorcycle, artwork, coins, high end electronics, sports memorabilia, antiques or collectibles, etc. If you have any assets you believe has value, then don’t be frightened away and speak to your trusted lender to study the value of your item and how much you can get for it.

Precisely how much can someone be lent for a loan?

Based on your asset, these are appraised and assessed by expert appraisers. Don’t be fooled by fly by night appraisers, check your local directory sites for referrals and good honest reviews of collateral lenders.

Precisely how does it work?

To be able to begin your loan, your assets are inspected, appraised, and a value is set for it. Once this is recognized, simple paperwork must be done, and information on the loan terms is divulged. Just sign the contract and your money is provided.

Precisely how long are loan terms?

Depends on you, really. You can opt to consider a yearlong loan, something to last many years or something as short as four weeks.

Is there interest to be charged on the loan?

Needless to say there is, however it is negotiable and will rely on the cost of your loan and duration. The interest for loans is set by each state. But each collateral appraiser can set up a consumer friendly rate to get more customers.

The aforementioned is just the tip of the iceberg when it comes to collateral lenders and loans. A word of recommendation: when looking for a collateral lender, try to find one with a good reputation, at the same time a solid foundation of experience in the industry. Honesty and integrity can also be things you should consider in a collateral lender, because once you’ve got those, you no doubt know you can rely on them about the privacy of your loan.

Sell Gold Phoenix to Biltmore Loan and Jewelry, the top choice buyer if you want to sell gold or for Bad Credit Jewelry Financing in the Phoenix Area. Call for a free appraisal!

Article Source:

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: