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 Business Borrowers Complete Success Kit and the Guaranteed Loan Money Kit.