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Identifying Assets To Use For Financing
Ryan Chen
January 29, 2025
In partnership with
Hi there,
Welcome to Loancater’s weekly newsletter. This is approximately a 4-minute read.
In today's newsletter, we’re going to go over the typical type of asset class that can be used to secure financing
We are going to go over…
The different collateral a loan can encumber
Why you want to use certain collateral for specific purposes
Actionable Tips
Most business owners don’t fully understand the available options for financing.
I.E they don’t realize they can tie up a rural real estate like a farm they live in for an asset back loan or the equipment for a leaseback(if it's free and clear).
Make a spreadsheet list of the type of asset you hold that is valuable and then show it to the financiers to get all your options.
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💰 Loancater’s Application
Get the best business loan in the market here (link)
✔ Clients Who Worked With Us In The Past
See previous business owner who were happy to work with Loancater (link)
⭐ Different Type Of Loans
Type of funding product available in the market (link)
The different collateral a loan can encumber
When it comes to financing there are a number of assets that can be used as collateral. What’s important to all the creditors whether it's a bank, private credit, or institutions is the liquidation and the path to return their principle in the event of a default.
The typical collateral falls into
Accounts receivables
Equipment
Commercial Real Estate
Your home
IP
Inventory (If the value is over 2M)
Why you want to use certain collateral for specific purposes
Bucketing your loan into categories is useful for 3 reasons. Number 1) In the event of a default you only lose said collateral. If you take a blanket loan on your business and your real estate they will seize your real estate and your clients invoices versus the alternative where you only lose the real estate.
Reason Number 2) By separating the collateral you have more leverage credit available to you. In the former example you would have lost the ability to use your business revenue to borrow capital if you had a blanket filing vs if you only used your real estate.
Reason number 3) If you ever wanted to sell off a piece of asset you would have to liquidate it and they would pay the lender first. I.E in the above scenario if you sell the Real estate you would still have to pay off the blanket business loan at full interest to access your capital instead of paying the debt service. That’s additional cost in prepayment.
How I Can Help You
If you like this newsletter and want to work with me, there are a few ways we can do so:
You can apply for a business loan here (link)
You can apply for credit repair by emailing [email protected] “I want credit repair”
You can apply for a free 30 minute strategy session for credit card processing & ACH here (link)
Or, you can reply to this email.
I reply to absolutely everyone.
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