In order to obtain a secured loan, a borrower has to offer something as collateral. The most popular forms of secured loans are mortgages and car loans. The problem with these types of loans involves how they are processed. A mortgage or car loan can take several weeks from the time the loan is initiated until the time the borrower receives his or her money. There are, however, a few types of secured loans where a borrower can get access to the money much quicker. Here are a few examples.

Loan from A Pawn Shop

Now that popular TV shows like Pawn Stars hit the airwaves, many people are now more aware of the services that pawn shops provide. A borrower can bring in merchandise like jewelry or electronics and the pawn shop will loan money based on its value. The pawn shop takes possession of the item. The borrower gets cash quickly and then must pay it back within a short amount of time. If they do not repay the loan, the pawn shop will have the right to sell it to recoup its losses.

A Car Title Loan

Individuals who own a vehicle have the ability to borrow money against the title. They need to own the car or truck outright and the title must be free of any liens. If so, they can apply at a title loan company like Embassy Loans of Florida. An application takes just a few minutes to complete. The borrower’s vehicle is assessed and then the loan is finalized. There are no credit or background checks necessary, so the loans are processed much quicker than traditional loans at a bank. The typical auto title loan at Embassy Loans is processed with the borrower receiving his or her money in an hour.

Payday Loans

A payday loan, or cash advance, is another quick and easy way to obtain money using collateral. The collateral in this case is a paycheck. Potential borrowers must have a job and must be able to prove that they have a steady income. The typical payday loan is for a small amount, a few hundred dollars for example, and is paid back within a few weeks. Most cash advance lenders want the loan repaid within two weeks. In an emergency situation, a payday loan is a great way to access money very quickly. Borrowers must write the lender a check for the amount of the loan plus any fees. If the loan is not repaid on time, the lender will attempt to cash the check.