What is a collateral loan?
Getting a loan with Lendy is a very straightforward process. First, let’s talk about what a collateral loan actually is. Instead of unsecured loans, or payday loans, collateral loans are made against an asset you physically own. Mortgages, for example are a specialized type of loan which use your house for collateral, also known as a secured loan.
History of collateral loans
Standard collateral loans have been around for centuries, most commonly being arranged within the walls of a pawn shop. You bring your item into the shop, its value is assessed, and then the pawnbroker provides you with a loan against a fraction of that value. To protect the loan from defaulting, the broker will hold on to the item until such time as the loan is paid off in full.
This is a way better option than a payday loan, which uses your paycheque, or more importantly, you and your credit score as collateral. One missed payment and you could destroy your credit rating for years, all over a few dollars.
Lendy works in pretty much the same way, but with so much more convenience. Take pictures of your item and write up a brief description of it at any time. We don’t care if it’s 4am and you’re sitting in your pajamas! One of our team members will review the submission (once they’re awake and have had their morning coffee, of course) and get back to you with a collateral loan offer. Click accept, and we’ll send someone over to come get the item from you. Curbside pickup at it’s finest.
I don’t need a loan, I just want money
What if you really don’t need a collateral loan? Lendy lets you unlock the value of your stuff by offering to purchase it from you outright. Don’t expect top-dollar, we need to go and sell it just like you would of course. By selling to Lendy, you can have money in your pocket the next day while we worry about finding that ideal buyer.
Are you ready to Get Lendy? Contact us today with your items you’d like to get a collateral loan on, or say goodbye to and we’ll do our best to have money in your bank account ASAP. Let’s get Lendy!