Other assets can be used as collateral for a loan. Following is a brief list of possible assets that can guarantee a loan.
There are of course more types of assets that can be used as collateral, even patents and exclusive rights like copyrights can be used to secure a loan but we will include here the most common ones. These asset types are: motor vehicles, immovable properties and different sources of income especially when a bank or financial institution is in charge of collecting such profits on behalf of the company.
Motor Vehicles
Many types of motor vehicles can be used as collateral for a loan. Auto loans for instance use the car as collateral to finance the purchase.
Other vehicles that can be used as collateral are vans, motorcycles, trucks, and many other types of vehicles. Since the risk of damage and destruction of the vehicle is higher than that of immovable properties, the terms and conditions of the loans are usually not so advantageous compared to home loans and home equity loans.
Water vehicles can also be used as collateral for loans. Though it is not as common as the use of cars or vans, water vehicles are as suitable for secured loans as any other asset.
Yet, don't expect every lender to take water vehicles as collateral for a loan. You need to contact specialized lenders that deal specifically with boat loans or loans secured with boats or yachts. The best way to find sources is by searching the internet for loans secured with water vehicles.
Immovable Properties
Immovable properties are the most common source of securities. Houses and condos are used as collateral for loans all the time. On mortgage loans the property guarantees the repayment of the secured loan. On home equity loans, the difference between the value of the property and the amount owed and secured by it is what is used to secure an additional loan.
But houses and condos are not the only immovable properties that can be used as collateral. For instance, land by itself can be used to secure a loan. This is very common when it comes to financing farming or rural projects. Country houses, cabins, huts, etc. can also be used as collateral. Anything of a certain value that is fixed to the land can be used as collateral.
Income On Secured Business Loans
Businesses have many other options to secure a loan. There are non tangible assets that can also be used as collateral for loans like brands and trade names, copyrights, etc. Also the future income of a business can be used as collateral. For instance, when a company receives income through credit card payments, the financial institution that process them can provide advances on the future payments and collect the money owed once the payment is cleared.
Mary Wise is a personal loan consultant who has been associated with Personal Bad Credit Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain unsecured loans, home loans, car loans, unsecured credit cards and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at http://www.badcreditloanservices.com
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