A bridge loan is when money is lent to an individual to cover an interval between two transactions. Basically it’s a short term loan for when you are waiting for assets that are tied up to become usable. The loan is intended to tied you over.
Jewelry-backed loans make excellent bridge loans
Jewelry-backed loans are a great option if you need a bridge loan. Since there’s no credit check or credit reporting, the loan amount is determined by the liquid value of the jewelry, your credit will not be affected by the loan. This is very useful if your transaction is dependent on your credit score. Another benefit is speed, asset-based loans can usually be completed in days allowing you to act quickly on an opportunity.
Examples of bridge loans
- Buying a House – Often times homeowners find the house of their dreams before they are able to sell the house they already own. A bridge loan can help with cash flow during the time period when you have two mortgages.
- Managing Business Cash Flow – The owner of a small business may need a bridge loan to pay for expenses while waiting for customers to pay their bills.
If you are in need of a bridge loan consider using your high-end jewelry or luxury watch to get an asset-based loan. Contact Diamond Banc or visit one of our five locations today to see how we can help you.
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