Forms of asset-based lending has always played a vital part in in times of economic crisis as well as times of economic stability.
Since the global financial crisis hit many have been seeking assistance from private lenders as banks and credit agencies move to limit their risk exposure.
There was a time when asset-based lenders were seen as a “poor mans bank” but many lenders have been seeing a rise in business owners and the wealthy using possessions as collateral against a short term loan.
Unlike other lenders, asset-based agents do not require bank and income statements or any financial records. The whole process is very simple and when times are hard and stress is high, simplicity offers some comfort in itself. The assets provide collateral against the loan value thereby allowing the lender to make the best offer. While the majority pay their loans and redeem their items, others prefer to let the items of value go. A small business may have a gap in its cash flow or reserves. The owner may use personal assets to secure a loan in order to prop up the business or in some cases, to pay employee wages.
Unexpected expenses can fall upon anybody at any time. In order to cover these expenses a short term loan against personal property may provide the solution.
An asset-based loan is the most simple, effective way to free up cash from assets quickly, privately and without hassle.
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