Collateral Loans

Many of our clients consist of people who have material wealth, but lack the cash flow required to back up a loan. People who have lost their jobs but possess valuable artwork; people who own jewelry items worth hundreds of thousands, even millions; owners of mortgage-free property. Yet these clients do not have the financial ability to pay down the loan, and are turned down at the banks’ cash-flow-sensitive barricades. The Liquidity Source specializes in all collateral loans associated with valuables such as artwork, jewelry, construction and property ownership, starting at $750,000. In the common case of property ownership, agreements on mortgage-free buildings should render The Liquidity Source as the lien holder and therefore not in a second position on the property. Through our close circle of investors, The Liquidity source is able to secure the best financial dealings for your business needs.

Are you having trouble obtaining a loan in today’s economy?
Is your bank’s cash-flow sensitivity interfering with achieving your financial and business goals?
Does your income statement not meet your bank’s lending requirements?
NO W2 Forms? NO cash flow statements? NO income to support the loan?

Leave it to the financial experts of The Liquidity Source to give you the very best in collateral loans solutions. Click here for an example.

If you have collateral in the form of real estate and business assets, we have the means and expertise to give you the best collateral loan solutions in order to achieve your business and financial goals.

Collateral Loans allow you to borrow a desired amount of money through the value of your assets.

Among the many sectors affected by the dire economic conditions which we face today, is the banking sector. Many times, bank policies and stipulations seem to work against even the most unlikely of clients, property owners. As the case stands with real estate today, though clients can most certainly prove full ownership and value of their property, most if not all banks lend money on cash flow. Many potential borrowers have collateral or equity to support a loan, but this is not something that can be indicated on a W2 form. Proof of equity is not proof of income, the risk is too large and banks are wary of how much of their capital can be exposed to a single borrower. Therefore due to the credit crisis, banks increasingly lag in lending, and clients cannot borrow money in spite of what they own. Banks have become cash flow sensitive and require a statement showing that the borrower can pay the note without a problem, regardless how much equity is on the table. The collateral is expected to be in good shape, but cash flow is key to the loan.

Real estate is only one instance of a collateral loan barrier, where requesters are stuck in a perpetual state of searching and applying, only to ultimately get discouraged and frustrated by the state of the lending environment. This trend has been increasingly troublesome to many of our clients; people who have substantial collateral but are turned down by their banks because they don’t have the cash flow to support the loan.

Collateral lending is very much needed today! If you have collateral but no sufficient income, The Liquidity Source, through its trusted network of private wealth individuals, is able to get investors whose criteria you successfully meet to take the assignment of the collateral, lend at a higher rate, but as long as the collateral is in good standing, they will lend against it. Therefore should the borrower fail to pay off the investor, the collateral will be lost at a discount. The investor’s security is, in fact, the equity of the deal – which is held in lieu of cash flow – and the ability to get paid if the borrower defaults. Leave it to the financial experts of The Liquidity Source to qualify you for the next level towards funding your business.

Example

Alex owns an apartment worth 5 million dollars with no mortgage. He goes to the bank with this information and wants to borrow 500,000 for his business. He is willing to put up the apartment for 5 million, but the bank says no! The financial statements that Alex has presented to the bank do not show the ability to pay the interest fully on the 500,000 dollar loan. The income is insufficient, and the equity that Alex has at this point is of no concern to the bank; the cash flow however, is.

The Liquidity Source will bring in private wealth investors who will take the collateral at a premium interest, thus securing financing for Alex and his business!