Im looking to expand my current business with a business loan. But don't have the down payment the banks want. Im looking for 150,000 loan to purchase equipment. Im wondering if i can use the collateral value as the down payment. The equipment values at 206,000,?
Answers (4)
Surely you can use the collateral to secure your business loan. But you must take some considerations.
Banks are particularly conservative about valuing a borrower's property for the collateral so firstly keep a detail record of the asset. Secondly you must understand the risks behind it, means that you must discuss the risks of using collateral with a financial advisor.
I'm wondering what down payment you are referring to. I'm guessing this is the collateral that they are asking. And yes, you can always use this for your collateral THAT if the bank where you would be applying for a loan would approve of it. This is what I don't like about bank loans, they get your money when in fact you're needing one. How about considering on a merchant cash advance? Have you heard of it? I have tried getting a loan program from arcafunding.com and they were able to meet my financial need. No collaterals and all. This was when I could not get anything from the banks.
For your business loan,you can take hard money loan.Yes,you can apply for hard money loan.Hard money loan is a very short term loan process.This is a asset based loan.This loan is given by private investors. Every people can get this loan very easily. Bad credit is not a big problem for hard money loan. Actually this is property based loan. You can take hard money loan from verified hard money lenders.Yes; visit to "www. lendeinguniverse.com".Here you will get 10000+ verified hard money lenders. They are always ready for give hard money loan to borrowers.Before taking hard money loan,you can also verify them.