Guest post: from Don Battis, Founder and CEO of Personal Asset Lender, Pawntique. Personal Asset Loans are helping small businesses get the short-term loans they need to make their businesses successful. These new alternative financial products can be obtained from online lenders who will allow you to use your personal luxury assets as collateral for loans. Interest rates are typically six percent per month, so they are too expensive for long-term financing. But they are proving to be quite popular among nimble entrepreneurs looking to take advantage of special offers and unexpected opportunities to grow their businesses. The Best Luxury Assets for Personal Asset Loans The items must have high value and must be shipped to our secure storage location. \tGold and diamond jewelry \tLuxury watches such as Rolex, Breitling, Piaget \tClassic cars such as a 1972 Mercedes Benz, 1960 Ducati motorcycle (NOTE: We must take possession of the collections. If you are not close to our storage warehouse, we can arrange to hold it at a secure location near you.) The Worst Items to Use for Personal Asset Loans \tBig screen televisions: You need to ship them to us. Very heavy/low value \tReal Estate: It's not allowed by law to use real estate as collateral for a Personal Asset Loan \tCars and Trucks: We must take possession of the motor vehicles so you will not be able to use them while we have them in storage \tComputers and electronics: Their value declines very quickly due to technical obsolescence The Best Use of a PAL \tEmergency cash to meet payroll \tA customer delays payment \tLate commission check from delayed closing \tAnticipation of a bonus check \tUnexpected equipment breakdowns \tTo take advantage of a special opportunity \tA material supplier offers a special discount, but needs cash payment \tA special opportunity for discounted equipment purchase \tA machinery auction \tBridge loan until long-term bank loan closes \tThe bank cannot process the application quickly enough to close the deal \tYour credit score needs to be improved by paying down credit cards Why Personal Asset Loans are Better Than Bank Loans \tSpeed: The whole transaction can take place in as little as 24 hours \tNo credit checks or lengthy loan applications \tA PAL allows you to tap into the equity in luxury assets to secure capital \tNo personal guarantee: You asset fully supports the loan as collateral Five Things to Keep in Mind After You Close a Personal Asset Loan \tIf you discover you need more money after the loan is funded, ask the lender if you can borrow more on your asset or offer additional asset as collateral. \tIf you decide you don't want your item back or don't want to payback the loan, the lender may be able to sell it for you. It can be sold and anything over the loan balance will be returned to you. \tIf you need a little more time to repay the loan, you can usually extend the payment terms by paying the interest and "rolling over" the loan for another period with the same terms as the original loan. \tIf you want to payoff the loan early, there is usually no prepayment penalty. \tIf you don't repay a loan, and the lender sells your property for you, the lender will still do business with you in the future. Editor's Note: I have to admit, although I was familiar with the concept of a Personal Asset Loan, I wasn't aware that it had become such a popular tool for small business owners in a pinch. Although this type of short-term, emergency funding is not for everyone, it is one more option for small business owners who need immediate cash and don't have other options. Like any important financial transaction, make sure you understand the terms and work with a reputable company. Lendio’s mission is to empower your small business by making small business loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or startup loan, Lendio offers hundreds of different loan products from a variety of lenders. Find out which business loan is best for you.