What is an Emergency Loan (Hard Collateral Loan) – Fast Action Finance
An Emergency Loan, also called a Hard Collateral Loan, Hard Money Loan, Collateral Loan or Asset Equity Loan is a loan secured by collateral that a borrower owns. That is to say that the loan is granted based only on the value of the asset being pledged and not on the borrower’s credit.
In the cases of these Hard Collateral Loans (Emergency Loans) from Fast Action Finance, the applicable asset must be physically held by Fast Action. This asset will be held during the term of the loan and will be returned once the loan is paid in full. This way Fast Action Finance does not have do credit checks and other verifications and can quickly release the funds to the borrower. Other than speed, another benefit of Hard Collateral Loans is that your liability is usually limited to the asset pledged as security.
Fast Action Finance lends up to $25,000 for a maximum of 4 (four) months for its Hard Collateral Loans.
Difference Between Hard Collateral Loans and Unsecured Loans.
Emergency Loans (Hard Collateral Loans) were discussed above. Although Fast Action Finance does not grant unsecured loans, there are some companies who do lend without collateral. These are called unsecured loans or signature loans, since there’s no collateral to protect the lender. In the cases of non-payment these companies put a mark on the borrower’s credit report, take them to small claims court and/or send the file to collections.
Assets Used for Hard Collateral Loans
Below are a few examples of what can be used as collateral for a Hard Collateral Loan
- Real estate (in some cases)
- Cash surrender values of Life Insurance policies
- Valuables and collectibles
Fast Action Finance focuses on the collateral being pledged and does not care about the credit score of the borrower. The borrower can be in the middle of a Bankruptcy or a Consumers Proposal and still get a Collateral Loan from Fast Action Finance.
Please see our website at www.FastAction.ca to get information on our Title Loans, also called Car Title Loans, Auto Title Loans and Cash Title Loans.
We can be reached at 416-239-2906 to discuss in detail what we can do for you. Our fax number is416-239-2907.