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Q: Loan question ( Answered,   0 Comments )
Subject: Loan question
Category: Business and Money
Asked by: shoaib-ga
List Price: $2.00
Posted: 05 Apr 2003 01:55 PST
Expires: 05 May 2003 02:55 PDT
Question ID: 186326
Some international real estate funding organizations  provide  "loan
collateral"  for their borrowers or clients for example  organization, I want to know that what is the
'meaning' of that mentioned sentence?
Subject: Re: Loan question
Answered By: sgtcory-ga on 06 Apr 2003 07:43 PDT
Hello again shoaib,

I've answered a question for you in the past, so as soon as I was
finished with a few others, I jumped right into yours ;-)

I will use an excerpt from the site to help explain what service it is
companies such as this provide.

"While we do ... using your collateral or ours, we specialize in ...
needs and what he can qualify for in today's "risk free" lender
requirements market.... "

This company acts as a third party between a company seeking funding,
and the companies that lend capital or resources. Since most
entrepreneurs and small business owners are not adept at formulating
their own contacts, this company will act as the middle man.

In the process, they use their 'collateral', or their assets to secure
the loan. If the idea they proposed to the loan company should falter,
or the business go default on the loan, this collateral would
typically be used to give the lending company assets to sell (or
keep), to cover for the loss.

Typical items of collateral could be, but are not limited to:

- Real Estate
- Large Estate Collections
- Stock
- Automobiles

Just about anything tangible that can cover the cost of losing out in
an investment could be used.

Companies like this usually make a percentage of the loan they are
able to connect, or what the industry likes to refer to as a 'finders
fee' ;-)

I did not utilize a search strategy for this answer. If you did want
to find more information about sites like this, you can search Google

venture capital "collateral"

Please do not hesitate to ask for clarification before rating this
answer. I look forward to assisting in any way I can.

There are no comments at this time.

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