Running a small business, I am well aware of the seasonality of it. Quite often – if not always – I need to cut costs during a slow season, so that I can keep my business in the black.

Unfortunately, doing so costs my business in one way or another: I can’t secure more business due to the financial constraints.

When I need to boost cash flow, I often use a line of credit. Unfortunately, it’s not always accessible. A loan with a personal guarantee? I have access to it, too, but the issue remains: It’s limited.

Business funding

There’s got to be a better way

I am investing in precious metals, and I’ve been thinking about leveraging them to get loans for my business (as well as more investing opportunities.)

Using your personal asset as collateral is an age-old funding method. Yet, due to the reputation of the funding companies and dealers, business owners often overlook this.

So, is there a better way to get personal asset loans? If you asked me, my answer would be yes. However, you need to do your own research before you decide on anything.

How?

The Internet is your ally in your search. So, try to search for personal asset loans or similar search terms on Google, Bing or other search engines you regularly use.

Please be aware that you will get so much information, that I can guarantee you 80 percent of them are either pure marketing messages, and a portion of them are scams.

So, what you should do right now is to find information from reputable, non-commercial sites, like Wikipedia. Once you get enough information, including the pros and cons of personal asset loans, you can now start looking for financial companies offering such service.

Here’s how to choose the right lender

Choosing the right company is quite challenging. However, there are some ways to help you eliminate, say, 80 percent of questionable companies. Here’s how:

  1. Always do a background check on the company. Here’s a list of question you should answer when evaluating a lender: Who are they? Are they properly registered? Where is their office? Are they accredited? Are they featured on media?
  2. When looking for a lender, always look for the one that offer online estimation of your personal assets, so you know what you expect before you actually call the company.
  3. Always look for a company that is featured by the mainstream media. Promoting nationwide on major media means that they are serious about their business.

What do I find?

During my search, I discovered that Borro comes out as one of the most reputable ones.

Borro.com

Borro is a reputable company licensed by the City of New York. It is a BBB accredited business, a Norton-secured site, and it’s a member of Appraisers Association. It has been featured by major publications, such as Forbes, The New York Times and WSJ.

Borro offers online estimation service which gives me an idea of what I will be getting when I use a particular personal property for funding my business. It also makes an instant offer and funds will be deposited in my bank account in less than 24 hours.

Borro also guarantees the privacy of the lending activities. So, no credit checks or any other information to any credit bureaus.

You can find more information about Borro here.

Takeaway

Obviously, Borro is not the only one offering this type of loans. Moreover, during your search you will get a different company in mind.

Regardless of your choice, please make sure that you have done your due diligence: You need to understand about the ins and outs of personal asset loans, as well as the reputation of the lenders.

Some words of warning: Always take any loan offers with a pinch of salt. Always ask yourself, “Do I need this?” and always make sure that you have the fund to pay the loan in full.

Good luck in finding the right solution for your small business funding!

Disclaimer: This article is sponsored by Borro, but the opinion expressed is entirely mine.