Collateral Loan
Start or expand your business with Finance IT Forward. Use our platform to find lenders that offer collateral loans for your business.
Everyone wants the best possible rate when they borrow money. At Finance IT Forward, securing your loan with collateral could give you more borrowing power and a lower interest rate.
Collateral loans have a range of advantages:
- Higher chance of qualifying
- More loan options
- Better payment terms
- Lower interest rates
Collateral loan typically have lower interest rates than unsecured loans. Lenders typically view collateral loans as less risky than unsecured loans. For this reason, lenders are generally more willing to charge a lower APR for collateral loans.
Finance IT Forward is a platform where you can find business loans, working/ operating capital to expand and modernize their business.
The most common type of collateral used by borrowers is real estate, such as one’s home or a parcel of land. Such properties come with a high value and low depreciation.
Using both personal real estate and commercial real estate as the basis to obtain a business loan may be an appealing option to business owners. For example, who have equity in their home or commercial land or building, and are looking to use that equity to obtain financing for their business.
With collateral loan you don’t have to pay high-interest rates if you have a low credit score.
At Finance IT Forward platform you’ll find a variety of lenders who offer property-centered loans. Above all, without high-interest rates or strict mandates.
Secured small business loans using real estate offers truly unique business funding options for small business owners, including startups. At Finance IT Forward platform these loans can be funded with low credit score minimums, no income documentation, no minimum time in business. In addition, still come with attractive features such as low rates starting.
There are numerous methods for business owners to get their loans on Finance IT Forward platform. One of them used methods is called an equipment sale leaseback transaction.
Sale-leaseback works kind of like an equity loan on your house. If you own equipment, you can use that asset to receive money immediately, and pay it back over a set period of time. For example if you own equipment: particularly heavy machinery, titled equipment, or construction vehicles.
Why Should Business Owners Consider a Sale-Leaseback Arrangement on Finance IT Forward platform?
A sale-leaseback arrangement is an alternative to bank and mortgage financing. As a result, that effectively separates the “asset value” from the “asset’s utility value” in a company’s real estate investment.
As a result, a saleleaseback arrangement can help to:
- Unlock a company’s real estate value.
- Enable a company to reduce its investment in non-core business assets, such as buildings and land.
- Liberate cash in exchange for executing a long-term lease.
- Sale-leaseback transactions can be a smart move by operating businesses that own their real estate. Since real estate values tend to rise and rents tend to drop when interest rates are low, business owners have an opportunity to sell their real estate high when rental returns are low, and keep occupancy costs at a predictable cash outflow by locking in long-term rental rates.
The idea of offering up something of value to convince a lender in order to borrow money is a fundamental concept in finance. The practice goes back as far as ancient civilizations like those in Greece, Rome, and India.
Structuring a loan as a secured loan reduces repayment risk for lenders. Naturally, if there is collateral involved, the risk associated with the loan is significantly mitigated and so will have lower interest rates. Unsecured loans tend to carry higher interest rates than secured loans as the non-payment risk to lenders is greater when there is no collateral pledged as security.
