Thursday, December 8, 2016

The Value in Collateral Verification

Here's the scenario... You've scheduled a final appointment with a client who's looking to get a business loan of a substantial amount. His credit check came back fine, he's professional and well spoken, his business plan looks sound, you've even met his wife.

As part of his application he listed a rare classic sports car as collateral. You have a copy of the registration and everything looks on the up and up., and then...

His business fails like most new businesses. Loan payments stop and he wont return your phone calls. The collection process begins and you learn that during the application process his "priceless baby" was sold! You didn't see it because the title transfer and proof of sale went through shortly after the loan was issued.

You were suckered. He got your loan and he got the funds from the sale of the car.

Luckily, this type of scenario is fairly rare, but it does happen and it can easily be avoided with a simple and affordable collateral verification inspection.

When you hire me to conduct the inspection I will meet with the client and document the existence and quality of the collateral. Evidence that can be vital in court as well as property seizure actions.

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