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    3 Replies Latest reply on Mar 28, 2010 9:47 AM by massagefever

    Assets for collateral

    massagefever Adventurer
      What kinds of things can you use as assets/collartel when trying to obtain a small business loan? For example, does furniture count? I run a massage therapy business so I have dozens of sets of sheets. I am trying to lo find out if I have enough before beginning the loan process.
        • Re: Assets for collateral
          phanio Pioneer
          Most assets based loans when it comes to business financing are related to financial assets like accounts receivables, purchase orders or credit card reciepts. Other business collateral usually entails inventory or raw materials, property, IP or equipment.

          You might be able to find a lender that will value your sheets as collateral - however, I think it will be unlikely. If you have other items as well - some banks or lenders will place a blanket lien as collateral (using all your business assets) but you probably would have to qualify for a loan using high credit and good income sources.

          There may be other options for you. Most banks and many private lenders do not fund start ups (without some of the assets listed above). But, many new businesses find ways to bootstrap. One way is using personal or business credit cards. These cards act like lines of credit - where you only pay for what you use. Plus, with the new rules in place, credit cards are easier to manage given that most lenders cannot just jack rates or include fees without notice.

          Business Money Today

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            • Re: Assets for collateral
              massagefever Adventurer
              I did a lot of my start up that I didn't have in cash with credit cards. But most wanted my personsal credit score b/c it is very and make it a personal card.

              I do have many other tangible assets, computers, something called a hydrocullator, which is fairly expensive to replace, a sauna, but I have no accounts receivables with my type of biz, I didn't know if equipment and furniture would count. Like tables, desks, dressers, lobby furniture.
            • Re: Assets for collateral
              alytus Scout
              i had banks tell me, that collateral can be, a car not older then 5 years, stocks, a CD, a house, a boat.