March 10, 2022 0 Comments Business, business funding, Luxury Asset Loan

2022 New Years’ Business Resolution: Starting A Side Hustle And Getting A Luxury Asset Loan To Fund It

2022 New Years’ Business Resolution: Starting A Side Hustle And Getting A Luxury Asset Loan To Fund It

It’s the start of the new year and with the new year come new resolutions. Everyone has personal resolutions but the businessman in you has a different approach towards these resolutions. You wish to start a new business or a new startup! The idea is all there. You have the execution all set out. All that remains is the financial aspect. As is the case with all new businesses, the starting capital can be a little too much, significant enough to deter young businesses from even seeing the light of the day. But there are ways in which you can finance your new ventures even if you currently do not have the capital required to start them. 

Loans are the primary way of financing any new business venture, be it startups or a side business to your existing business. They enable you to gather enough capital without having to rummage through your savings. There are various loan types at your disposal, each with its own advantages and drawbacks. As a business owner, what is the better option?

Types of Loans – What to Know

There are various financing options available to you if you’re willing to start fresh. One of the most common options for a small business loan is to apply for an SBA loan. SBA or Small Business Administration loans, as the name suggests, are the loans guaranteed by the US Small Business Administration. Since these are backed by a government organization, these are generally the most preferred options for any business owner. The interest rates are lower than typical bank loans and offer various repayment terms depending on your loan type. However, these loans have strict eligibility requirements and require a good credit score in order to apply for it. SBA loan lenders will typically do a hard credit pull of the business owner to figure out the eligibility. And even if you’re eligible, these loans have a ton of paperwork and the processing times are longer than other loan options. This isn’t an option if you need the cash as soon as possible. 

Other ways in which you can raise your working capital are invoice factoring and merchant cash advance. Invoice factoring or invoice financing allows you to apply for a loan against your outstanding invoices. As a business, you may have borrowers that have yet to pay you back, and you may have invoices that pile up to thousands of dollars but have not yet been realized. Invoice factoring allows you to get loans against these outstanding invoices. A merchant cash advance is similar to invoice factoring, the difference being it factors in a certain percentage of future credit and debit receivables as a loan amount. Both these loan types can be treated as bad credit business loans, as anyone with a poor credit score can apply for them. The drawback is that since these are not as dependent on the credit score, they have high-interest rates

Other ways to apply for business financing can be business credit cards. A business credit card may be the most helpful if the loan amount is not huge. And although business credit cards require a good credit score, they can also be used to improve an already bad business credit score by paying monthly credit card bills. To apply for these cards, however, you must have an account with the bank and different banks may have different eligibility criteria. For a business credit card, the creditworthiness of the business owner is much more important than that of the business. Therefore you may apply for a credit card if you have a good credit score but your business does not.

Other business funding options may include crowdfunding where investors and other individuals who believe in your startup can chip in. This can be carried out via any of the crowdfunding platforms available, like Indiegogo or Kickstarter. Paypal working capital is another popular option to get a startup loan, which doesn’t require a credit score for loan approval. Instead, it goes through your Paypal account history. This requires the applicant to have a Paypal account. 

All aforementioned options (excluding SBA loans) require either no credit check or a soft credit inquiry, which don’t affect your credit report. However, since these loans have low credit score requirements, they typically have higher interest rates, which may not be suitable for everyone. in some cases, some lenders may also ask for a business plan before they lend you the loan amount, probably a projection of the annual revenue one year down the line. Is there a short-term loan available that has low credit score requirements and low-interest rates? There might just be something that ticks all the right boxes.

Luxury Asset Loans – Your Friend in Need

Luxury asset loans are a type of secured loans which are given against collateral. These collaterals can be anything, from cars to yachts, to vintage art and artifacts. Luxury watches and bags can also be used as collateral while applying for a luxury asset loan. Since these loans are backed by your own assets, they require no personal credit score, have a lower interest rate than traditional business loans and the application process is easier and the processing times are lower.

Not only luxury assets, as a business owner, but you can also use your business assets as collateral as well. You can use your land or your equipment (equipment financing) to apply for a collateral loan. The lenders do not look at either the business or its owner’s credit history, as the loan is secured by a tangible asset, which makes the whole transaction safer for both parties. The lender can be assured that the borrower won’t default on the loan and the borrower can enjoy the benefits of lower interest rates and quicker processing times. Qualifying for these loans is easier than all other loan options, and the loan amount depends on the asset you wish to use as collateral. Before going for a luxury asset loan, it may be a good idea to go to appraisers to get a fair idea of what your asset is worth in the market. After all, you don’t want to be sold cheap by an unscrupulous lender

Different online lenders might have different interest rates and eligibility criteria, but a general consensus is that these loans are the way to go if you’re looking for microloans or any other type of startup business loan. As a borrower, you have various options to choose from, from different interest rates to repayment terms. All it takes is a bit of research to find the best match for your situation.

Vasco Assets – Your Helping Hand

Researching for a loan option can be a time-consuming affair, and in certain cases, time is of the essence. This is why we at Vasco employ several in-house experts who can guide you through the various ways in which you can finance your business. We have several loan offers, from personal loans to business loans, that you can use for your individual use case. Our years of experience in dealing with luxury asset loans are guaranteed to give you peace of mind while offering the lowest interest rates and higher loan amounts. Come visit us in Orange County or connect with us on social media, and we will get right back to you with the best deals!