Do you have dormant assets but limited cash?

Use your valuables to access the money that you need, fast.

Borrow up to $100,000* and get it within 24 hours.

Pledg has revolutionised online lending so you can get cash discreetly, easily and quickly, every day.

What is asset-based lending?

Asset-based lending is a type of lending that is secured by the borrower’s asset or collateral. The lender keeps this asset until the loan has been fully paid. If the borrower defaults on the payment, the lender will acquire the asset and sell it to make up for the loss.

What are the benefits of asset-based lending?

Asset-based lending has many benefits, especially to the borrower!

One advantage of asset-based lending over traditional lending—borrowing from a bank—is it has fewer risks.

When you default on a bank loan, several unpleasant things can happen as a result. First, it could impact your credit rating and make it even more difficult for you to seek out financial assistance in the future. A poor credit rating can also make your loans more expensive because bad credit borrowers are usually offered higher interest fees than borrowers with excellent credit scores. This often leads them to fall into the trap of taking out loans they cannot afford to pay back. Second, defaulting on a bank loan could also lead to a collateral seizure, such as your home. 

Even applying for a bank loan already comes with risks for the borrower. If your loan application is rejected, it will negatively affect your credit rating and increase your chances of getting rejected in the future.

Asset-based loans usually come with lower interest rates because there is less risk involved for the lender. They know that they will get their money back whether the borrower pays or defaults, so they don’t need to charge fees to cover for any potential losses.

The best thing about asset-based loans is that just about anyone can apply for them, whether they have good credit or not. This makes asset-based loans very appealing, particularly for bad credit borrowers who are worried about getting rejected by traditional lenders.

How much can I borrow?

The amount you can borrow depends on the value of your asset. 

In most instances, you can get between $250 and $100,000. Of course, the more valuable your asset, the higher your loan amount will be. 

Once you declare an asset as your collateral for your loan, the lender will look at the loan-to-value ratio. The loan amount is how much the lender can loan to the borrower. The asset value is the value of your declared asset.

Do you have any assets that might be considered valuable?

What assets are accepted?

Different lending companies have different views on what they consider an “asset” but it is usually something of value, such as jewellery, fine art pieces, luxury cars, precious stones or metals, and other luxurious items.

How do I apply for an asset-based loan?

It’s so easy to apply for an asset-based loan!

All you need to do is contact the asset-lending company and get your asset valued. Make sure you describe it as accurately as possible, including its condition. In most cases, these companies require a photo of your asset.

Once you have provided this information, the lending company will give you an offer. It’s up to you to accept it or not. Remember that they will need to see your asset before they confirm your loan. After you have sent them your asset and agreed to their terms, they will transfer your loan to your bank account.

Pledg has revolutionised online lending so you can get cash discreetly, easily and quickly, every day.

Find out how much you can borrow using our online estimator. You’ll be surprised what we’ll offer.

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