Collateral Loans: Getting Quick Liquidity Using Your Luxury Car
Being in a financial pinch doesn’t always mean you have to part with your valuables and luxury assets. Depending on how fast you need your money, your best bet might be to take out a collateral loan. A collateral loan is often the quickest fix to a short term financial problem– it involves using a high value item as collateral for a loan that will be paid back at a set time, which can vary depending on who you get the loan from. You can use a variety of valuables as collateral so long as you’re the owner, but people will most commonly use vehicles, jewelry, and other luxury assets.
One Vasco Assets client– we’ll call him M.– even used his Bentley as collateral when he needed money to invest in a business opportunity.
M. is a wealthy person, and nothing was more telling of his good fortune than his prized Bentley. Always the opportunist, one day he was presented with a business opportunity that he couldn’t pass up. The problem was that most of his money was tied up in investments. Knowing that an opportunity like this was extremely rare, he was eager to jump in. But he simply didn’t have the money, and the window of time he had was small.
M. was uncertain about what to do. He called up his good friend to discuss his situation over drinks. M.’s friend told him that when he was faced with a similar situation, he used his car as collateral for a loan. In four months time he was able to pay off the loan and had even made money on his investment. M. saw where this was going. Was his friend really suggesting that he use his prized Bentley for a collateral loan? He laughed off the idea. Besides, he was supposed to take it to a show in a couple months– the biggest one of the year. Confused, M.’s friend asked if he had any other options. Reality started to set in. A high value item like his Bentley would most likely provide him with the money he needed to get out of his situation, and he knew he could pay off the loan within several months.
The very next day, M. called Vasco Assets requesting an appointment. In no time, Vasco approved and funded his loan, and in a few months, he was back in his Bentley, just in time for the show. The process was fast and easy, and M. was able to walk out with a check in hand.