How To Get Capital Without a Home Equity Loan

Money is hard to find these days. Eventually, you will really need to find some for an emergency or for something in relation to business. When this time comes, if you don’t have the cash to cover it, you will need to secure a loan. Most of the time, loans are given in exchange for home equity. The creditor uses your home as the collateral for the loan, which simply means if you don’t pay up on the scheduled loan repayments, your home can be taken from you. Sometimes though, people need capital financing when they cannot use their home as collateral. Normally, this situation is quite hopeless however; there are still a number of ways to secure the cash you need without the collateral.

  1. Family. In times of financial trouble, the best people to turn to are actually your family. Since you don’t have collateral to put up to obtain a loan from a bank or financial institution, then your best bet would be to ask people if you could borrow some cash. Ask your dad, mom, grandparents, brother, or sister if they can spot you the money you need. If they can’t, go a bit further to the first, second, and third degree relatives if possible. Offer to pay the loan back with interest. Normally, since they are family, they will lend you the money right off the bat with no interest at all. Some may even offer that the repayment can be done in kind or at a certain point in time when you are financially able.
  2. Friends and colleagues. Many people do not really believe in this option since it is said that money can cause friendships to crumble. However, since you are in financial dire straits, you really need to exhaust every possible option. Ask your friends, colleagues, and co-workers if they can cover you this time. Again, offer to pay back the loan with interest and make sure to give a realistic schedule for repayment. Be prepared for some rejections since some of these people will surely have their own financial problems as well. If this option proves successful, then make sure you keep your word and pay back the loan on time and with interest.
  3. Easy credit institutions. Since there are many people needing financial aid without any trace of collateral in their pockets, more and more companies have entered the business of easy and quick credit. Normally, these companies prey on the financially weak and allow them to borrow cash quick and easy with no collateral. Sounds really good but there is a catch. You sign a contract for the loan and you will need to pay the loan back at ridiculously high interest rates. Furthermore, if you don’t pay up, you can be legally charged or worse. However, if you really need the money, then this is another option.
  4. Employer. If you are currently employed, then asking your boss for a salary advance or loan is another option for you to get some money easily. Some employers like providing loans to their employees since it is a way to hold them by the neck and make them work more efficiently. It ensures that the employee stays in the company as well.

These are some of the easiest ways to get your pockets filled with cash without any collateral. There are probably a few more ways but these are the most common. Make sure to sign contracts to anyone that lends you to ensure that both of you are protected. Once you fully repay the loan, make sure that the creditor signs a receipt to protect you from malicious moves later on.


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