If you run in the world’s elite circles of investors, CEOs, politicians, and A-listers, you have probably heard of loans using collateral. People who have high net worths tend to lack liquidity on a regular basis. Their money is working for them, generating more wealth as they invest in new business ventures, put their name on important architectural projects, and expand their real estate portfolios.
Despite their lack of liquidity, these moguls and move-makers always seem to be able to get in on the next big thing. How are they able to free up cash when they need it most? The answer is simple: asset lending. People who own valuable assets can borrow money against them, unlocking extra cash to continue building wealth and staying ahead. And the best news? While this strategy is popular among the world’s richest people, you don’t have to be a multimillionaire with a perfect credit score to access loans using collateral.
While traditional lending strategies can come with numerous barriers, using collateral for a personal loan can be a more flexible option for those who possess valuable assets. However, many people who are eligible for asset lending are unsure of where to begin. If that sounds like you, don’t worry. You are not alone!
Today, we will cover the basics of asset lending, including a step-by-step explanation of how to obtain loans using collateral, the benefits of leveraging your assets, and more. By the time you are done reading
Traditional Lending vs. Loans Using Collateral
There are pros and cons of collateral lending vs. traditional lending. A personal loan can provide much-needed funds for various purposes, including travel, debt consolidation, and home improvements. There are very few restrictions on what you can use your personal loan money for, making it an attractive option for those who need an infusion of cash. However, when you go through traditional lending methods, numerous restrictions are in place.
First off, traditional lending methods often come with low loan amounts. The average loan amount for an unsecured personal loan is just $8,108, according to Forbes. That might seem like a substantial amount until you consider that, to become an angel investor in a hot new company, you typically need to write a check for $25,000 to $100,000. That $8,000 traditional loan doesn’t seem so great now, does it?
The other big drawback of traditional unsecured lending is the validation process, which can be time-consuming and frustrating. There will be numerous administrative tasks and requirements to fulfill, including credit checks, net worth and income inquiries, waiting periods, and additional documentation. On the other hand, loans secured by collateral are not subject to these annoyances. That is because you demonstrate your value and creditworthiness right off the bat when you leverage your valuable assets, such as luxury watches, which can be used as collateral.
Let’s take a closer look at the benefits of asset lending as compared with traditional lending.
6 Key Benefits of Asset Lending
Asset lending offers several benefits. Here are just six of the countless perks you will enjoy when you choose to take out loans using collateral with your luxury watches.
#1: Access Higher Loan Amounts
The loan amounts you can get for leveraging your luxury watches speak for themselves. While unsecured personal loans rarely exceed five figures, loans using collateral allow you to access much higher loan amounts. For example, when you take out a loan against your luxury watch with AMETA Finance Group, you can access up to $5 million.
#2: Gain Liquidity Faster
Because you do not have to contend with credit checks, income verification, and other relentless administrative processes, asset lending is typically a faster process than unsecured lending. At AMETA, for instance, you can receive your wire transfer in as little as 24 hours after signing your loan agreement.
#3: Enjoy Lower Interest Rates
Loans using collateral offer less risk for lenders, which translates into significant benefits for borrowers. One example? People who take out collateral loans on luxury watches often find advantages, such as lower interest rates compared to the typical interest rates for unsecured personal loans. That is because the lender is in possession of your valuable asset. This is one of the only cons of collateral loans. So if you fail to pay off the loan, they have clear recourse to recoup their money (i.e., selling off the asset).
#4: Limit Hard Credit Inquiries
The average credit score in the U.S. is around 705, but if your credit score is lower than that, getting a personal loan can be a struggle. Additionally, individuals with lower credit scores are often charged higher interest rates, making it even more challenging to repay debt. It’s a vicious cycle! When you leverage an asset as collateral, on the other hand, credit checks are a thing of the past. You have the opportunity to demonstrate your value through your assets, such as luxury watches. Additionally, undergoing too many hard credit checks can damage your credit score. With asset lending, you can avoid credit score penalties, steep interest rates, and the embarrassment that comes with them.
#5: Avoid Hidden Fees
Now, this one also depends on choosing a reputable lender. Some personal loans come with virtually countless annoying fees – think shipping fees, origination fees, early repayment penalties, and others. But when you choose a reputable, reliable asset-based lender like AMETA Finance Group, hidden fees are no longer your concern. Instead of nickel-and-diming you at every turn, our goal is simply to give you the best deal for your luxury watch.
#6: Improve Your Repayment Terms
Remember the idea that less risk for lenders equates to more benefits for borrowers? Here is another prime example! Loans using collateral are more likely to have longer repayment periods and more flexible repayment terms. Plus, you will rarely see penalties for early repayment. You might even be able to recoup your high-end asset earlier than you expected if you come into some cash.
How to Get Loans Using Collateral With Luxury Watches
Now that you know the ins and outs of why asset lending is so popular, you might be ready to try it out for yourself. You just have to meet one simple criteria: Owning a luxury watch from one of our 10+ approved brands! Seriously, it is that easy. If you own a luxury watch, you are already on the path to approval. After that, you will just follow along with our simple process:
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- Fill out our short form. You will share some basic information about your watch and submit accompanying photos. Ideally, you want to capture every angle of your watch and ensure that your images are of high quality, showcasing your piece in the best light.
- Get a preliminary estimate. Based on the information and photos you submit plus our knowledge of the watch market, we will provide you with a general estimate of your watch’s value. Remember, we can offer loan amounts of up to 80% of the market value.
- Ship your watch to us. If you are ready to move forward, send in your watch or drop it off at our New York City headquarters.
- Complete the appraisal. This step is more on our end! Once we receive your timepiece, we will appraise the watch with the help of our skilled partners at Avi & Co. and determine its up-to-the-minute market value.
- Sign your loan agreement. With the appraisal complete, we can offer you a loan agreement. We can even combine different watches to provide loans up to $5 million. You can sign the agreement digitally.
- Receive your wire transfer. Often, we can wire your loan amount within 24 hours after you sign the loan agreement.
- Repay your loan. We work with you every step of the way to help you stay on track with loan repayment. Once you have paid off the loan in full, you can retrieve your watch from our custody (we can also arrange for it to be shipped back to you, fully insured).
More from AMETA
We have tons of helpful resources, making it easy to find out more about why luxury watches are great for loans using collateral. Check out our collection of informative and objective articles right here.
Leverage Your Assets With a Trusted Lending Partner
When you work with AMETA Finance Group to get loans using collateral through your luxury watch or watches, you can rest assured that you are getting the best value for your timepiece. Our highly trained team has years of experience in the high-end watch and jewelry industry, and our reliable appraisals ensure that you know the true value of your asset. We lend against a variety of elite brands, including Rolex, Audemars Piguet, Richard Mille, Patek Philippe, F.P. Journe, Lange & Söhne, and many others.
Discover the best loan value for your watch today. Start by submitting this short form to get a quote.
