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Asset Based Loans[edit]

Asset based loans are secured on an item of value that you own. Sometimes known as an online pawn broker loan, you send in the items you wish to borrow against and the company keeps them in a secure location until you pay back the loan. Only if you fail to pay back the loan will your items be sold by the asset based lender to recover their losses. Asset loans can be a great option for someone with bad credit, County Court Judgements (CCJs) or other problems like defaults on previous loans, as you can borrow against something you own with no credit check.
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What is an asset loan?

An asset-based loan (also known as an “asset loan” is a loan) is a short-term loan secured by your assets (could be personal items, your home, your company's assets, inventory, equipment, jewellery, cars, etc.) This means, if the loan is not repaid, the asset will no longer be yours, but will belong to the asset loan company. When you pay your loan back in full, your item is returned to you.

Asset loans can be a good option when you cannot get a loan from a more conventional lender, due to the borrowers financial status. Asset loans can be compared to sub prime lending, especially their similarly high interest rates. Asset loans are a great way of getting hold of some cash whilst you are waiting for your next payday. You can usually have asset loans for a short length of time and you generally do not have to pay any extra fees if you want to repay your asset loan early.

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Types of asset loans

There are a few different types of asset loans: home owner loans, logbook loans and pawnbroker loans.

Home owner loans - use your home as security for the loan and these are good credit asset loans.

Logbook loans - use your car logbook as security for the loan and these are good credit asset loans, fair credit asset loans and bad credit asset loans.

Pawnbroker loans - tend to use personal items as security for the loan and these are good credit asset loans, fair credit asset loans and bad credit asset loans also.

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Typical borrowers

Asset loans for home owners:

  • Own your own home either with or without a mortgage
  • Good credit history
  • UK resident (usually on the electoral roll with 3 years address history)
  • Have sufficient income to be able to afford the loan
  • Able to prove with bank statements and wage slips that you can afford the loan

Asset loans with pawnbrokers or logbook lenders:

  • 18 years of age or older
  • Generally have bad credit
  • Can only get credit with sub prime lenders
  • Have a vehicle that is free (or near free) of finance
  • Have a vehicle that is no older than 10 years (differs between lenders)
  • Are the legal owners of the car
  • Have a personal item that they are happy to use as security for the loan
  • Usually have a small income or are on benefits.
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Examples of asset loan companies

See all Asset Based Loans

Example Loans:

Borro

68.8%APR

Logbook Loans

478.3%APR

Logbook Money

442.66%APR

V5 Loans

498%APR

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