4 Unusual Ways to Tap Assets for Cash
Do you know how much cash is tied up in your stuff? Probably not, but the likely answer is that it’s more than you realize. Your home, your car, your jewelry and other items are sitting there waiting to be converted to cash. Here are four ways you can tap into those assets.
1. An Equity Stake in Your Home
Take Point Digital Finance, for example. This Silicon Valley startup makes loans to homeowners in exchange for an equity stake in their home. Imagine that you were looking to make improvements on your home, send your child to college debt free, or make some other big purchase. Next, imagine that you didn’t qualify for a home-equity loan or you just didn’t want to add a payment to your monthly budget.
If your home is worth $500,000, Point would offer you a payout of $25,000 to $50,000 in exchange for owning 5% to 10% of your home. Then, when you sell your home (which must happen within 10 years of striking this deal), Point cashes in on the price appreciation along with some other fees, including the escrow fee and Point’s processing fee of 3%.
2. Future Freelance Fees
If you’re a freelancer or own your business, you know that clients and customers aren’t in a big hurry to pay, but that doesn’t stop the bill collectors from demanding payment. San Francisco startup Qwil will pay you for the work you’ve done for your customers before your customers pay you. The company charges a fee of 0.5% to 5% of the loan and contacts your clients to make sure they actually owe you the money. Not a bad deal compared to payday loans.
3. Vacation Day Loans
Yes, it’s true that you can borrow against your unused vacation days. HoneyBee, a Fintech startup founded in 2016, makes loans against a person’s unused paid time off. The company usually makes loans of $700 and under and uses a person’s paid time off as collateral. As payments are made, the vacation days are returned. HoneyBee, based in San Francisco, verifies the amount of paid time off you have with your employer and charges a service fee equal to a 20% to 36% annual percentage rate (APR).
4. Cash from Your Car
Would you risk losing your car in exchange for a short-term loan? Florida-based Finova Financial is betting that you and others will. The company usually makes loans of around $1,500 to $2,000 in exchange for a lien on your car.