How To Get a Small Business Loan With Collateral in Denver

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Learn How to Get a Loan to Start a Business the Easy Way

An entrepreneur beginning a small business in Denver, or in any other part of the United States, will need to seek out start-up funds, and many choose to fund the project through small business loans. Also called business collateral loans, small business loans provided by lenders other than banks have terms that vary, but most require a source of collateral for added security. Through collateral loans, the lender can mitigate the risk of non-repayment of funds since the collateral can be sold to recuperate costs if the loan terms are not met. Luxury exchange businesses such as The Lux Exchange in Denver can help entrepreneurs reach their goals through loans secured with a variety of collateral types. If you are looking for a loan to start your small business and have luxury assets you can use to secure funding, this type of exchange can be right for you.

Find out your collateral asset value today!

Luxury Jewelry

One of the most common luxury assets used as collateral by entrepreneurs to secure funding is jewelry. High-end jewelry from luxury companies such as Cartier, Harry Winston, Tiffany & Co, and David Yurman can be used to secure a large source of loan funding for your business. Using your jewelry as collateral does not mean you will be giving up your luxury goods permanently. Lenders will hold your assets until the terms of the small business loan have been met, then your items will be returned. As long as you do not default on your loan terms, you receive the best of both worlds with the return of your assets coupled with the success of starting your own small business.

Luxury Watches

In addition to seldom-worn luxury jewelry, many potential small business entrepreneurs own luxury watches that are seldom-worn, inherited or saved for special occasions. While you are waiting for your next special occasion, why not use your watch as collateral for a loan to start up your small business idea? Luxury watch brands such as Chopard, Rolex, and Tag Heuer are excellent sources of collateral and will be returned to your possession upon completion of your loan terms.

Diamonds and Precious Metals

Similar to luxury watches, many asset owners save diamonds and precious metal items for special occasions or keep them hidden away in a jewelry safe. By using diamonds of any type or precious metals such as gold or platinum as collateral on small business loans, owners can receive extra value for their special high-end assets. As with all other luxury collateral, items are held securely with the lender and then they are shipped back with security measures to ensure their safe return.

Designer Handbags

Designer purses or handbags are popular high-end assets that often carry more value used as collateral than with resale. Many individuals own multiple luxury handbags or other accessories from top designers, so extra items can help you get started on your small business. Luxury goods are evaluated through the experts on loan exchanges, so if you ever plan to use your designer handbags as collateral, it is in your best interest to keep any paperwork and original packaging to help with the accuracy of the professional evaluation. Although not inclusive, popular and elite designer handbag brands make great sources of collateral.

Fine Art and High-End Collectibles

Collectibles of a variety of types can be used as small business loan collateral if the value can be assigned properly through professional evaluation. If you have fine art with certification on display in your home or business, or if you have it stored away for safekeeping, you can use it to help make progress on your business venture. Other types of high-end and valuable collectibles make an excellent source of collateral and can be analyzed for value by your lender’s expert evaluators.

  • Whether inherited or purchased as investments, valuable antiques can be evaluated as potential collateral items.
  • Comic book collections. Authentic collectible comic books of high value can be compiled together and evaluated as one unit.
  • Sports memorabilia. A common but highly valued source of collateral, collectible memorabilia for any sport can be evaluated for authenticity and value. Examples include signed jerseys or equipment, baseball cards, and championship rings or belts.
  • Fine wine or spirits. Highly sought-after vintages of wines might be taking up room in your wine cellar. Exchange lenders keep this valuable commodity at the proper temperature in the ideal storage conditions while your loan terms are being completed.
  • Ancient or rare artifacts. Authentic artifacts are valuable assets that will be kept under high security.
  • Record collections. Whether arranged by artist or genre, some record collections are of high enough value to use as small business loan collateral.
  • Other sources of high-end collectibles not mentioned. These examples of collectibles and art pieces are not exhaustive, so contact your exchange lender to see if your other valuable item qualifies as business loan collateral for your small business loan.

Electronics and Technology

Some luxury exchanges accept technology and electronics such as Apple brand products as collateral. These could include iPads and iPhones but also extends to Apple watches and MacBook laptops. Other types of electronics might be eligible, but anything that quickly becomes out of date or loses valuable quickly might not be an acceptable collateral choice.

Luxury Cars

For larger small business loans, a combination of types of luxury items can be used as collateral. Alternatively, if you have a highly-valued luxury car that will maintain its value you might qualify for a car-backed small business collateral loan. Unlike other asset collateral loans, when you use your luxury vehicle as collateral it will remain in your area in secure storage until the loan criteria have been met. Secure facilities include indoor storage with surveillance and insurance to ensure your peace of mind during the process. Luxury vehicles used for the purpose of collateral loans need to be owned free and clear by the borrower.

Real Estate

Another highly valuable form of collateral for a small business loan is property. If you own real estate outright you might have the option to take out a loan in the amount of a portion of the real estate value. Due to the value of real estate, a larger sum of money can be borrowed in comparison to other types of collateral loans. Not all exchange lenders deal in real estate, so make sure you work with one that accepts this form of collateral if you plan to use it.

Get Started on Your Collateral-Backed Loan

If you are an entrepreneur in Denver, or reside in any one of the 50 states, and are ready to get started on your small business venture but lack the up-front capital to get started on your project, using one of many types of collateral items can help you on your way. Valuable collateral such as jewelry, handbags, real estate, vehicles or luxury watches can be used to secure funds for a small business project without having to sell or pawn your property.

Using a luxury exchange lender, your items will remain in a secure location while you complete the terms of your loan, then they will be returned to you once they have been satisfied. Contact The Lux Exchange in Denver today to see if your items can be used as small business loan collateral and to request an initial analysis and quote. The Lux Exchange loves to do business with entrepreneurs countrywide as well as in Denver, so please don’t hesitate to reach out!