Secured Loans Online
Sometimes our financial needs are so big that just instant loans or payday loans cannot cover – we need to borrow a larger sum of money. But while a lender may give you $2,000 without collateral, a large sum like $5 million requires security, and thus they are called secured loans. In the word of lending, secured loans are just like unsecured same-day loans since they both allow you to borrow a specific amount over a set period of time. Based on the agreed terms, you can repay the loan in monthly installments, often set at a fixed amount throughout the maturity of the loan. Secured loans are often more suited to businesses as well as large projects with valuable underlying assets such as machinery, vehicles, company directors that can provide a personal guarantee or commercial property.
Just like same-day loans, there is a wide pool of lenders ready to offer secured loans, with a maximum amount based on the actual value of the underlying assets.
What is a secured loan?
A loan type that is backed by assets is called a secured loan. It is one of the most popular types of loans and expedient financial solutions, especially in a situation that requires a large cash outlay. A secured loan enables you to leverage your existing assets to access funding that can help you transform threats into opportunities and weaknesses into strengths real quick. Whether you want to acquire new machinery, expand business operations, or consolidate debt, secured loans are the ideal solution.
The main difference between secured and unsecured loans is that amount you obtain is collateralized or secured against a particular asset. In this context, collateralized means the lender or creditor can repossess the asset if you fail to pay the loan back.
Since you are pledging an asset (usually valued more than the amount of loan), secured loans are extremely riskier compared to unsecured loans because you could lose your prized asset to the bank if you fail to keep up with the repayment schedule.
On the flip side, however, the loans carry less risk to the bank or lender since there is collateral. This also means the interest rates charged on secured loans are usually lower compared to same-day loans.
Also, since they are secured, these loans usually have higher borrowing limits than unsecured loans.
Due to the many things involved, including your valuable assets, it is crucial to know exactly what you are pledging and what you risk losing before taking a secured loan.
What are the advantages of secured loans?
There are many things to like about secured loans, including the following advantages:
No need for a perfect credit history
With a secured loan, you don’t need to have a perfect or even decent credit score to be funded. Traditionally, a great credit score is good for your chances of getting a loan, but today we have lenders specializing in advancing credit to borrowers with poor credit history.
Even with a bad credit score, you still stand a chance of getting approved for a secured loan that unsecured loan, because the risk of defaulting is offset by the asset, pledged against the loan. If you don’t keep up with your repayments, the bank or lender can repossess the asset to claim back the money owed.
Larger limits with lower rates
One of the important benefits of a secured loan is the ability to borrow larger sums with very lower interest rates because the loans have less financial risk to lenders compared to unsecured loans. Moreover, the more shares you have in the asset, the higher the borrowing limits and the lower the rates.
Use assets as security
Secured loans are usually described as a pathway to unlocking cash since they use existing asset items in your possession as collateral.
This means that provided you have an asset with value, you can take obtain a secured loan to meet your financial obligations.
This way, the lender has that extra reassurance that in the event the borrower defaults, they can just auction the assets.
Due to the lower risk associated with secured loans, lenders are more confident lending, and it usually means no personal guarantee is required or a deeper credit history check.
Variety of assets accepted
The good thing about secured loans is that you can use a range of assets to obtain a loan. It could be a commercial property such as a warehouse or other types of assets like vehicles and yellow plant machinery among others.
Some lenders may want to know how you plan to use the asset as well as its value, but generally, the range of assets approved means that secured loans are open to a breadth of needs.
Longer repayment period
Secured loans appeal to many borrowers because it usually has a longer repayment period compared to short-term loans, meaning monthly repayment amounts will be lower.
Why Choose Us For Secured Loans?
Maybe you are seeking funds to grow your business or maybe you want money to help ease your financial stress, either way, Micro Enterprise Works is always ready and available to help you out. Here are some of the reasons to choose us for your secured loan needs.
Variety of financial solutions
Covering a range of resources in both personal and business finance and the US loan market, our trustworthy and reputable funding lines assure a maximum success rate when seeking finance for your personal and business use. Whether you are looking for working capital finance, invoice discounting, asset finance, bridging loan, or any other form of financing, rest assured Micro Enterprise Works will find the best and credible finance solution for you.
When you choose to work with us, you decide to collaborate with a team that has many decades of collective experience and skills in the field of finance. Our team is specifically trained to fast-track loan approvals and help each person achieve their long-term financial objectives.
If you are looking for a secured loan, we can help you out find loans with the best rates on the market. Long-term customer rapport, trust-based growth, and personalized services are the centerpiece of our services.