THE BLOG
05/30/2014 11:21 am ET Updated Jul 30, 2014

What to Do When Bank Loans Aren't an Option

Life rarely travels in a predictable, straight line. Situations can arise -- family emergencies, investment opportunities and cash flow gaps, among others -- that require significant amounts of capital on short notice. But if those funds aren't available, the alternatives can be slim indeed.

Many financial institutions offer signature loans based on the person's personal guarantee to repay the amount borrowed. But such loans are hard to get, limited in amount and hampered by stringent underwriting rules. Home equity lines of credit are another possibility, assuming that sufficient equity exists. Finally, family members may be an option -- however, most people are reluctant to obligate relatives or even inform them about the need for cash.

Fortunately, personal asset loans can be a smart solution. This new financial alternative allows individuals to borrow from $1,000 up to $2 million in just a few hours. The process is safe, fast, respectable, private -- and very dependable.

Personal asset loans are executed by tapping into the value of major assets such as luxury cars, jewelry, fine art, precious metals, collectibles, antiques, even fine wines. Licensed appraisers determine the fair market value of the asset, after which an appropriate loan is made, often within a day or two. The asset is held by the lender until the borrower is ready to repay the loan and reclaim the item, usually in a matter of months.

Loans against personal assets have numerous advantages over selling. Most obvious, of course, is the elimination of the time and commissions involved in putting the item on the market. But importantly, most people who need cash also have no interest in losing their possessions. The goal is simply to temporarily turn a given asset into cash. With a loan, even the most prized possession isn't gone; it is available once more as soon as the loan amount is repaid. Moreover, the owner avoids selling the asset quickly under "fire sale" circumstances, which might result in a significant loss of real value.

Another plus to personal asset loans is that they do not rely on, or impact, personal credit scores. Because the transaction is private, only the lender and borrower are involved and no details are reported to third parties. If the loan is not repaid, the asset is liquidated to settle accounts (a circumstance that, it should be pointed out, happens very infrequently).

Interestingly, those who initiate a personal asset loan rarely do so because of financial distress. Especially in today's economy, opportunities arise with short lead times and only limited windows of participation. Individuals of means -- many of whom have spent years building their net worth and whose wealth is tied up in stocks, real estate and various expensive possessions -- need cash quickly in order to take part. Personal asset loans give them the flexibility they need to make the move, realize their financial gain and repay the loan with profit left over.

With personal asset lending, positive net worth individuals have an avenue beyond banks, family and friends for obtaining cash quickly. Moreover, their valuable and treasured assets remain secure. Personal asset loans are fast, convenient and responsible. As one of the most innovative solutions around, they help people achieve their financial goals and objectives, on their terms.

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