When you need liquidity quickly, waiting around for credit checks and income assessments can be a drag. It is always a good idea to have some faster options for accessing cash in your back pocket, and collateral lending is one of those savvy maneuvers.
Wondering how to get a loan fast? Borrowing against your assets might be the solution you have been looking for, especially if you need to borrow more than $50,000 or want to avoid credit checks or submitting tax return documentation. For flexible lending solutions that meet your unique needs, AMETA Finance Group is the place to turn. We are your trusted partner in all things luxury watch and jewelry loans, and we know that speed is of the essence.
Join us as we walk through some asset loan basics, discuss loan timelines, and explore a few of the most frequently asked questions about our process. We look forward to helping you build generational wealth and access the liquidity you need, whenever you need it.
What Are Asset Loans?
Asset loans are an alternative type of lending that involves borrowing against the market value of an asset you already own. They are a type of secured loan. To better understand what sets asset loans apart from standard personal loans, we will take a look at both arrangements, comparing and contrasting traditional lending methods with highly beneficial asset loans.
Unsecured Loans
This is what probably comes to mind when you think of the word loan. An unsecured loan relies on the lender assessing your financial history, credit score, and even proof of income statements (like pay stubs, W2s, 1099s, or tax return documents). The lender uses these external factors to determine how likely you are to pay back the loan.
For those who have declared bankruptcy or who have a lower credit score, obtaining an unsecured loan can be very difficult. If you are offered a loan, you might be hit with high interest rates or low loan caps. This is because the lender needs to offset the perceived higher levels of risk associated with lending you money. If you do fail to pay back a loan, it is difficult for a lender to recoup their losses. Thus, they essentially make up for them early with high interest rates.
Secured Loans
In many cases, secured loans offer a more beneficial option to borrowers across the board. If you are struggling to get approved for a traditional personal loan due to a questionable financial history or less-than-perfect credit, a secured loan may be an achievable option. Even if you can get a regular personal loan, you may not want to: Secured loans tend to offer lower interest rates, higher loan amounts, and faster turnaround times.
How is this possible? Well, secured loans take a different approach to mitigating risk. Instead of relying on your past financial history to evaluate your likelihood of paying back the loan, the lender “secures” the loan through an asset. The lender offers you a loan as a percentage of the market value of a given asset (which might be a luxury watch, jewelry, or other items).
Then, the lender hangs onto the asset for the duration of the loan period. If you do not pay back the loan after a number of allowed extensions, the lender may repossess the item and sell it off in order to recoup their losses. In this way, the lender is taking on far less risk. This translates to benefits for you, the borrower: lower interest rates, higher loan amounts, and more.
AMETA Tip: Secured loans may also be referred to as asset loans or collateral loans. These terms are interchangeable, so do not worry if you see one versus another!
What Kinds of Assets Can I Borrow Against?
One of the many attractive features of collateral loans is the wide range of assets that you can borrow against. Here at AMETA, we specialize in loans against luxury watches and fine diamond jewelry. However, there are many other lenders out there with different focuses, ranging from upscale vehicles to boats to fine art and antiques. Of course, real estate is also a common collateralized asset for lending purposes.
The most important thing to consider is choosing a specialized lender. You want to work with someone who can reliably appraise your asset. With a confident appraisal comes a higher loan-to-value ratio (the percentage of your item’s appraised value that you can borrow), faster appraisal and turnaround times, and better terms for you.
The Timeline for Getting a Loan
For many borrowers, the turnaround time for getting a loan is one of the biggest considerations. Here are some of the standard timelines you will see in order to get your hands on a loan.
Personal Loans: The approval process for an unsecured personal loan typically takes about a week. After your application is approved and you sign the loan agreement, you can and receive your funds in 1-5 days.
Collateral Loans: At AMETA, our appraisal process is one of the fastest on the market. We can appraise your watch or jewelry in just a couple of business days. Then, we will send a digital loan agreement that you can sign online. After it is signed, we will wire the money directly to your bank account in just 24 to 48 hours.
SBA Loans: Another common loan for business owners? A Small Business Administration 7(a) loan. This type of loan typically takes 60 to 90 days from application to funding, making it a much longer and more arduous process for borrowers.
HELOC: A home equity line of credit, or HELOC, is another popular way for homeowners to access liquidity by leveraging their real estate. Generally speaking, it takes between two and six weeks for a HELOC to be approved and actualized.
FAQs About Collateral Lending
Do collateral loans have lower interest rates?
Collateral loans often have lower interest rates than traditional unsecured loans, as they are less risky for the lender. The average rate for an unsecured personal loan is currently about 14.48%. In contrast, our collateral loans at AMETA Finance Group come with competitive low interest rates of just 4%, less than one-third of the average for a standard personal loan.
Does a watch appraisal take a long time?
Appraising a watch does not need to take a long time, especially if you are working with a reputable, specialized lender. A lender with expertise in the world of high-end timepieces will be able to appraise your watch in a matter of days, as the lender will already have a finger on the pulse of the luxury watch world, giving you an accurate and fast assessment of value.
How much money can I borrow with a collateral loan?
Collateral loans generally offer higher caps on loan amounts than their unsecured counterparts. At AMETA Finance Group, for instance, we offer collateral loans of up to $5 million. The typical cap on a traditional personal loan, on the other hand, is just $50,000. For those who are looking to take out large or time-sensitive loans, collateral lending is often the best option.
How long does it take to get a loan?
The timeline for getting a loan funded depends on the type of loan that you are taking out. Traditional personal loans typically take about a week to fund, while collateral loans can take just a couple of days. Small Business Administration loans take as much as 60-90 days, and a home equity line of credit normally takes two to six weeks. There is a wide range of timelines for funding a loan.
Can you get a loan with a low credit score?
If you have a low credit score, it can be more difficult to get certain types of loans. Unsecured loans with a low credit score will likely come with lower loan caps and higher interest rates. Collateral loans, on the other hand, allow you to borrow against your assets without undergoing a credit check. This makes collateral lending an attractive option for those who are still building up their credit or who have had some financial roadbumps in the past.
Unlock Financial Possibilities at AMETA Finance Group
Are you ready to take out a loan on your luxury timepiece or fine diamond jewelry? Even if you are not 100% ready to commit, consider getting a free appraisal to determine the worth of your luxury timepiece. You might be surprised by how much money you could access with a high-end watch or jewelry loan.
Our trusted team is your go-to destination when you are ready to borrow against your valuable watches and jewelry. We are here when you need us, whenever you are ready to make a change in your financial story.
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