numerous loans are guaranteed by some kind of collateral; because the borrower wants his or her stuff back, it increases the liability of prepayment.
Plus, it means that the lender still has commodity of value indeed if the loan is noway repaid. But, a many foreigner loan agreements have been secured with other, more unusual means. A many of the strangest
1. A Soccer Star
A Spanish bank financing the soccer platoon Real Madrid offered two of the brigades players, Cristiano Ronaldo and Ricardo Izecson dos Santos Leite as collateral for a loan. The bank helped finance the accession of the two players for a sum that totalled over$ 111million.However, the players’ contracts would go to the Central Bank of Europe, If the bank went under or the platoon did not repay the loan.
2. A steed Race nags are, in fact, a common asset for securing loans. A winning hybrid can be worth hundreds of thousand. occasionally, the steed itself is security for a loan; in other cases, the bank asks for breeding rights as collateral.
3. A Cat
A finance company in Louisiana that provides loans for buses and exchanges formerly accepted a cat as collateral. The cat in question wasn’t an ordinary house cat; it was a thoroughbred show beast. The loan officer said that he didn’t flash back whether the borrower ever repaid the loan, but, that he did not have a cat, so the loan must have been repaid.
4.SexSex.com, that is. The sphere name was valued at over$ 12 million when it was bought with a loan from a New Jersey investment establishment.
5. Patents
A company’s intellectual property is generally its biggest asset; this is more true than ever in the information age. We have just set up about only one loan where patents were used as collateral. In this case, a company that manufactured goods for the home put up five patents for a loan of$ 125,000. The possessors demanded plutocrat, ironically, to sue another company for patent violation. The case was successful, but, the outgrowth would have been intriguing had they lost.
6. rubbish
In Italy, there are lenders accepting bus of artisan quality parmesan rubbish as collateral for business loans. Should the borrowers dereliction, that makes for an awful lot of garlic chuck.
7. developer Handbags
There are now several lenders in the” upmarket pawnbroker” business. These companies accept pocketbooks, holdalls , sunglasses and other developer movables in exchange for a short- term loan.
8. Rubber
Chinese manufacturers are buying up rubber recently to use as collateral for business loans. numerous economics pros question the wisdom of accepting it as security; the material only has a six month useful lifetime before it needs to be used.
9. Wine
The same pawnbrokers flashing their acceptance of developer goods are generally open to taking fine stretches, as well. According to one broker, utmost would be surprised by how low the credit conditions are of some of the people who appear the most fat.
10. Cattle
In Zimbabwe, there’s a bank that accepts cows as security for loans. The borrower generally gets the beast back within two times.
