hey folks, let’s say I have some money that is in cash form and I want to get a loan on it so i can do whatever i need, can I use my cash as collateral?
what would be the best way to go about this?
You can borrow against money in your account i believe.
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which bank allow this?
lets say I have 100k whats the max they would allow me to take against it?
Do you know how to work a blunt instrument and possess basic anatomical knowledge?
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First of all, Thank you so much for the helpful links, from what i saw 2 of them max out at 100k and 1 I couldn’t see what it maxed out, lets say I had 1mill though, is there anything for big cash like that? because 100k isn’t really going to scratch my needs.
Private lenders or specialized lenders based on what you’re trying to do.
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You can Send it to me I’ll loan it out at 12% Apr no questions asked
First payment you missed you lose
Why not give us a little more context as to what you plan to do with 1M Cash secured loan / line of credit?
As always with LH, the more details, will lead to more informed & constructive responses.
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buy a bunch of small businesses in my own industry
not 1mill exactly but not 100k either. some where inbetween
Well, you should certainly do something with it.
You’re only losing buying power every day it isn’t out there working for you.
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IIRC correctly you had some bread truck routes or something similar. Yes, you can do cash secured loans or a line of credit. A business loan that is underwritten may be a “better deal” or maybe a percentage down & seller financing.
All sorts of combinations out there!
How’s the house coming and the Mercedes you got for the wife?
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You need a large regional bank or one of the national banks. Either find a private banker/wealth management banker or ask for their SME (small-medium-enterprise) rep. See what they can offer you. If you have an established business with a credit score at D&B, it’s pretty easy to get a small business loan. Just a head-up that with a large cash deposit, it is likely that a portion of it will be uninsured.
In the old days, I’d recommend First Republic but now, it’s pretty fair game with all the major banks.
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Depending on the size of the SMB you’re buying and your experience, you can likely get funded by M&A banks or M&A bank divisions. Merchant banks and private will charge hefty fees and SMB sellers may not wait for SBA loans which may be your cheapest option. Many banks will lend on cash, some will lend on other liquid collateral also, over $1m I would say speak to a private banker.
If you want to DM more details I can get you with an M&A guy that used to work for me years ago in a REIT and also a top private banker at a large bank (depending on liquid value).
EDIT: I also work with a great SBA lender, who is helping multiple clients in buying real estate for their businesses.
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I believe wealth management companies (e.g., Morgan Stanley) does this. Fees on money managed can add up though.
Another thing to look into depending on the amount of money you’re talking and if you will use and then repay the money, certain whole life insurance policies can accomplish this. Basically you borrow against the cash value of the policy, but the upfront fees are high… I think I was quoted like $30k or something for around $500k of cash value iirc. I decided not to move forward so not an expert in this, but plenty of wealthier people in my network who invest in real estate does this instead of holding it in the bank. Do your own DD, but this is called infinite banking concept (ibc)
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