Creative Collateral Hacks You Can Use to Get a Loan Faster + Cheaper

There may come a time when you may not qualify for a regular, unsecured personal or business loan. That’s when you’ll most likely turn to secured ones.

As lenders we prefer to simply get our money back. We don’t want to bring a legal action against our clients so we use collateral as a safeguard. We really don’t even want to deal with your collateral but it’s a way to protect us and get you a loan.

When you approach a business loan lender for financing, their first consideration is your ability to pay back the loan. One of the methods they use to ensure repayment is to ask you for some type of collateral.

Here are a few creative ways you can use collateral to get a loan approved faster at a better rate.

Commercial Properties
If you wish to buy a property, you can use that very property as collateral. On the other hand, you can borrow against a commercial property you already own to fund other projects. Banks usually lend up to 50% of the value of commercial property.

Equipment
Getting a small business equipment loan could be a clever economic move when you need tools and machinery for your venture. The very equipment you are seeking to purchase would act as the collateral, since the equipment is used to secure your loan.

Automobiles
You can use your vehicle as collateral if you own it outright. Estimate your car’s value using the Kelley Blue Book, and compare this to your payoff amount. Before offering your car as collateral, check with your lender to ensure that the terms of the small business loan you’re seeking will allow this.

Revenue-Based Loan
Another fast, simple way to obtain financing is with a revenue-based loan. No collateral is needed and there are no credit requirements because this type of loan is centered solely on the amount of money your company is depositing into its business account every month. Generally, borrowers can have access to funds the same day, regardless of credit: a very appealing option to startup businesses.

Even if you’re getting a business loan, you might pledge your personal assets (like your family home) as part of a personal guarantee.

This is just a sample of the many things you can use as collateral. For the more in-depth list, go here to see even more options. If you’re ready to see your options, click below and we’ll help you find what you need.

– Real estate (including equity in your home)
– Retirement accounts
– Cash accounts
– Investments
– Insurance policies
– Valuables and collectibles
– future receivables + payments

FAST QUOTE

For the best terms and a fast answer fill in the form below. Getting a FAST QUOTE will not affect your credit and we don’t pull a score until you’re happy with the loan terms. Our privacy policy confirms we do not disclose information without your consent.

Step 1 of 2

0%

• Your name*
  First Last
• Primary phone*
• Email address*
• Purpose for loan request*
  ( select one )Real Estate InvestmentPrimary ResidenceBusiness
• Type of loan*
  ( select one )RehabPurchasePurchase and RehabRefinanceBridge LoanForeclosure PayoffNew ConstructionRental Property - PurchaseRental Property - RefinanceOther
• Type of loan*
  ( select one )PurchaseRefinanceBridge LoanCash AdvanceOther
• Type of loan*
  ( select one )PurchaseRefinanceForeclosure PayoffNew ConstructionOther
• Describe loan needed:*

•  
• Subject Property Information*
  For privacy reasons you could leave the Street Address off by putting a 'Private' in that field. If multiple properties state 'Various addresses'. All other address fields are required.
  Street Address City State AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingArmed Forces AmericasArmed Forces EuropeArmed Forces Pacific ZIP Code
• Property type:*
  ( select one )Single Family House (Detached)Condo/Townhouse/Co-opMulti-family Property (2-4)Manufactured/Mobile HomeMobile Home ParkHotel/LodgingSelf Storage FacilityApartment BuildingRestaurantLand/LotFarm/RanchAuto Repair/Gas StationDay careMedicalWarehouseIndustrialMixed UseStrip Mallother (considered)
• Property type:*
  ( select one )Single Family House (Detached)Condo/Townhouse/Co-opMulti-family Property (2-4)Manufactured/Mobile HomeLand/LotFarm/RanchMixed Useother (considered)
• Total Debt Owed on Property*
• Describe real estate:*
• Property's current As-Is value:*
• Property purchase price?*
• Maximum you can put down:*
• How much is the rehab cost?*
• What is the After Repaired Value?*
• Total loan amount requested:*
• Repayment strategy*
• Fair market monthly rent income:
•  
  Creative Options
  Experience, equity and credit will help you get the best loan options available. If you own real estate we may be able use cross collateralization for your loan (the link opens in new window so you don't lose your place in the application)
• How much total equity do you estimate your real estate holdings to be?*
  Including your primary residence.
• Investment rehab projects completed in the last 36 months:*
• Estimated middle credit score:*
  Please enter a number from 400 to 900.
• Own property besides a primary residence?
  • Yes
  • No
• How many properties do you own*
  besides primary residence. 1-45-910-1920+
  Include a second home, rental property and flips in progress.
• Comments or clarifications?
• REQUIRED Disclosure to Send Application*

  I hereby represent this application is accurate and I authorize We Lend Money™ to use this application, and future information supplied by me, for the purpose of obtaining a loan. I acknowledge while We Lend Money™ is a direct lender, it may, upon my approval, submit this application to their trusted network of quality lenders if better loan terms are available:

  • I agree to the above disclosure
• Old Estimated credit score*
  ( select one )Under 640Above 640Above 720

 

OUR GUARANTEE:

Whether we process your loan in-house or with our partner lender you are backed by our We Lend Money Guarantee™ so you have peace of mind of a timely, professional closing and our years of experience in real estate and business.

Borrowing Without Collateral

If you prefer not to pledge collateral, you’ll need to find a lender that’s willing to hand over money based on your signature (or somebody else’s signature). Some of the options include:

• Unsecured loans such as personal loans and credit cards
• Online loans (including peer to peer loans) are often unsecured loans with good rates
• Getting a cosigner to apply for the loan with you – putting their credit at risk

In some cases, like buying a home, borrowing without using anything as collateral is probably not possible (unless you have significant equity in the home). In other situations, it might be an option to do without collateral, but you’ll have fewer choices and you have to pay a higher rate to borrow.