THERE ARE PROBABLY MORE PEOPLE with bad credit in this world than people with good credit. If you’re either type of person you may want to consider:
- Borrowing collateral to make your credit stronger, or to reduce your interest cost, if you have a good credit score.
- Presenting a strong financial statement to any lender you want to deal with who makes the type of loan you seek.
- Getting a faster YES answer because you’re “a strong borrower,” with collateral, the type lenders love to lend to.
“WHAT KIND(S) OF ASSETS CAN I BORROW, AND FROM WHERE?” you ask. Here are your answers that you can use today:
|Asset Name||Possible Source|
|Actively traded sticks or bonds||Stock brokers; investment bank|
|Real Estate-raw land; buildings||Owners-individuals, firms|
|Precious metals; jewelry||Companies; individuals, firms|
|Bank Accounts; CDs||Individuals; estates|
|Accounts Receivables||Companies; Individuals|
|Settlements-lawsuits, estates||Attorneys; estates|
|Legal lottery winnings||Individuals|
“HOW CAN I CONVINCE SOMEONE TO ‘LEND’ ME their assets to use as collateral for a loan?” you ask. Here’s how you do this selling job to get successfully the collateral you need:
- Prepare a Business Plan showing how you’ll use the money you plan to borrow with the asset(s) as collateral.
- Show how your business will grow from the first year through its third year. Present the numbers-sales, profits!
- Give a step-by-step schedule of your Loan Repayment plan, detailing how, and when, you will repay the loan you’ll use the collateral for. Show exact dates on which you will repay.
- Provide a collateral “Freeing Up” Plan that shows what percentage of the collateral will be available, free and clear, to the supplier, as you pay off the loan-10%, 20%, 30% etc.
- Present your Business Plan to owners, firms, estates, stock brokers, etc. who have access to collateral. Offer a 5% fee to the provider. If your Plan looks attractive and promises safety of the collateral, you have a good chance of getting your loan.
Copyright © 2006 by International Wealth Success, Inc. All rights reserved.
Tyler G. Hicks, the president of International Wealth Success Inc., is the author of many wealth building publications. including the Multi-Family Home and Multi-Unit Real Estate Riches Kit.