How to Get Collateral Based Loans - YouTube

How to get a business loan even when you think there is no way you can qualify. Conventional  

banks have strict qualification requirements. There  are not a good place to look for start-up loans or  

if you have poor personal credit, usually they want  2 to 3 years of tax returns before they will  

lend you any money. If you're lucky you might get  a single credit card, over 89% of  

business applications are denied by the big banks.  What do lenders want to see? Lenders generally  

want to know you have enough assets sufficient  financial reserves and enough personal collateral  

to ride out business fluctuations. How do loan  applicants demonstrate this? Borrowers must show

solid cash flow sufficient to repay the loan  a track record of profitability and success in  

a similar business endeavor. Essentially this is  to prove creditworthiness. Let's look at start-up  

loans get specialized financing to buy things you  need to get your business started or get loans to  

put up commercial signs. Equipment financing and  Leasing is available to buy new equipment, you can 

even get loans to get graphic wraps for vehicles.  Your best bet is collateral-based loans. Collateral  

makes lenders more comfortable they have something in case you default use your assets as

collateral rates are often 5% or less, your personal credit rating doesn't matter. Types of collateral you

can use include stocks your 401k existing inventory  and accounts receivable. You can work with a  

guarantor. Ask friends or family members with these kinds of assets they may let you leverage

their asset in exchange for a percentage of your  business. They usually want less of a share  

of your company than a VC would 401k financing is  typical. Let's look at 401k financing. You can use  

an existing 401k or IRA as collateral for business  financing, pay no tax penalties this program uses  

IRS proven strategies you can still earn interest  on your 401k, low rates often less than 5% close  

and fund in less than three weeks. Can usually  get up to 100% of what's rollable within  

your 401k. What about securities-based financing.  Use existing stocks as leverage for business  

financing borrow as much as 90% of the value of  your stocks you continue to earn interest on the  

stocks pledged as collateral closing and funding  takes less than three weeks there is a 70 to 90%  

loan-to-value rates may be as low as 1.6%.  It is a working capital line of credit but you  

will have challenged personal credit. Let's look  at accounts receivable factoring. Get forwarded up  

to 80% of receivables you must be in business for  one year at minimum. These must be receivables

from another business rates of 1.33% or more get money in under 24 hours remainder of the

accounts receivable is released once the invoice is paid in full. Closing takes 2 weeks or less. Let's

Explore accounts receivable financing. Get an accounts receivable credit line with rates of less

than 1% with no consumer credit requirement. Receivables should be with the government or

another business. If you also have purchase orders you can get financing to have those filled. You won't

need to use your cash flow to do so. Checkout inventory financing. Use existing inventory as

collateral you'll need inventory valued at $500,000 or more. Get approved for a line of credit for 50% of 

inventory value. Let's recap, conventional banks and loans are a problem and so are private

investors. Instead get creative with collateral this includes cash flow financing or try the SBA for some

forms of loans as these are often for startups. Try Square and PayPal or unsecured business

financing and build business credit and then you'll never have to depend on lenders again. Contact us

today to learn more about how to get a business loan even when you think there's no way you can qualify.