A secured loan is a financial instrument which requires the use of collateral as a security for the amount borrowed. This can be any personal or business property, depending on the originator of the loan. Examples of secured loans are car loans, home mortgages and savings secured loans.
Some refer to it as “loans of last resort” because defaulting on such loans will lead to loss of a home, vehicle or other property. But secured loans are ideal if there is the intention to repay in terms of interest rates because secured loans are considered low risk, as opposed to unsecured or non-collateral loans.
Secured loans typically have longer repayment terms because lenders are confident borrowers will not risk defaulting and losing their property, such as their home. Since loan values are usually only a fraction of the actual market value of the property, it would not make sense to default, and either way the lender wins.
However, the same irritants are associated with secured loans and other types of loans from traditional lenders: loads of document requirements, long waiting periods and inflexible repayment schedules. You pay late, you pay more. That is, if you succeed in getting approved which is in no way certain.
At Merchant Advisors, we help you with your financial needs without requiring collateral. Instead of holding your property for hostage, we place our trust in your business acumen by investing in your future earnings. The Merchant Cash Advance facility does away with most of the irritants and gives a pretty decent interest rate, the lowest in the market for comparative products. The only requirement is that you have a merchant account and your volume of sales justifies the amount of the cash advance. If your need is relatively short-term and urgent, the Merchant Cash Advance can help you.