Many small businesses have long relied on a business line of credit for maintaining cash in a range of situations from making large inventory purchases to meet surging demand, or to sustain operations during a slow period. A business line of credit, once established, provides immediate access to whatever amount of cash a business owner needs, up to a predetermined maximum loan amount the borrower qualifies for. Unlike standard loans, there is no initial lump-sum disbursement made through a line of credit; cash is disbursed at any point that the borrower requests while the line of credit account is open.
Traditional Business Lines of Credit
Traditional business lines of credit provided by banks are typically unsecured, and interest begins to accumulate on the outstanding balance as funds are drawn. The amount of loan principal that is repaid replenishes the amount available for borrowing on an ongoing basis. Many come with a variable interest rate. They are subject to credit checks and good credit scores, typically involve a personal guarantee by the borrower, significant application paperwork and business documentation requirements, and weeks or months to obtain.
While a traditional small business line of credit from a bank may be a good choice for some businesses, for many others, it may not be the best or even an available option. Why? Liquidity needs are often more pressing than a bank’s lending process will usually accommodate. A credit bureau report on a potential borrower’s credit history may reveal disqualifying information, or a credit score may just not be high enough. The business itself may be in a category that is outside of the bank’s “comfort zone” for business lending, regardless of other factors that would make it a sound credit risk. In actual fact, many small business owners find small business loans difficult to get from a bank, and that includes lines of credit.
The Borro Luxury Line of Credit is A Better, More Accessible Alternative for Many Small Business Owners
As a traditional business line of credit, Borro’s Luxury Line of Credit is the loan product for small business owners and others who require ongoing, same-day access to capital. Unlike most bank lines of credit, Borro’s is a secured loan with its credit line is based on Borro’s valuation of one more of a borrower’s luxury assets that it securely stores as collateral Interest is paid monthly on loan balance at a fixed interest rate.
The Luxury Line of Credit is a reliable, fast and easy way to access cash with no credit check or financial disclosures. Consumers with luxury assets they already own can benefit from the most flexible and convenient funding options, especially useful in uncertain financial times. With Borro’s team of accredited experts and financing specialists, loans receive fast approval and can be tailored to meet each borrower’s needs.
Luxury Assets accepted as collateral for a Borro Luxury Line of Credit include collectible and classic automobiles, luxury watches, fine jewelry and diamonds, designer handbags and accessories, gold and precious metals, other auction-quality assets, luxury real estate, and guaranteed sports and entertainment contracts. Businesses in the luxury goods industry can also use some of their existing inventory as collateral.
For those fortunate enough to own such assets, collateral loans offer extremely attractive means of quickly generating additional capital without being rushed into a sale. Their ability to provide capital in as little as one business day, coupled with high levels of transparency, convenience, and service, make collateral lenders a valued ongoing financial resource for luxury asset owners alongside their accountants, banks, and financial advisors.
Who is Borro?
Borro, a Luxury Asset Capital brand, is the leader in confidential loans that use the borrower’s luxury assets as collateral. We are a timely alternative to traditional loans that are often either too slow, invasive and burdensome, or, in some cases, unavailable. We unlock the equity in a wide range of luxury assets that are high in value but low in liquidity and execute transactions from thousands to millions of dollars in as little as one business day.
We were established to provide capital to individuals at critical moments because we can be trusted to move quickly and confidently to meet individual and business financial deadlines. We have been a lender to over 15,000 clients, providing over $450 million in loans since our founding over a decade ago. Borro’s industry-standard-setting levels of transparency, convenience, and service are making Borro the leader in trusted, alternative loan solutions.
For more information, please visit: https://borro.com/line-of-credit/