05/02/13

5 Things You Need to Know About Personal Asset Loans

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.

The Worst Items to Use for Personal Asset Loans

The Best Use of a PAL

Why Personal Asset Loans are Better Than Bank Loans

Five Things to Keep in Mind After You Close a Personal Asset Loan

  1. If 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.
  2. If 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.
  3. If 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.
  4. If you want to payoff the loan early, there is usually no prepayment penalty.
  5. If 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.

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About the author

Don Battis
Don Battis

Don Battis is Founder and CEO of Personal Asset Lender, Pawntique.  Pawntique began as a boutique online pawn shop in 2011.  Don contributes their growth to serving small business people who use their personal assets to get cash for their businesses. A family owned business located in Portsmouth, NH Pawntique serves customers all over the US. “My family has been in the jewelry business for three generations and I’ve been an entrepreneur and small business investor all my life.”

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