Most people are aware that shipping containers are the workhorses behind international shipping, since they are often depicted in television and movies as being loaded onto ships for transport abroad. The reason these containers have become so prevalent in the shipping industry is because they are extremely durable and weatherproof, which means they can stand up to any kind of weather dished out while traveling the high seas. Anything that gets shipped in one of these containers is certain to arrive at the destination, unharmed and completely intact.
But they aren’t only used for international shipping, because now the word has been spread about how excellent they are for storing things in general, even if they aren’t being shipped anywhere. Residential users can rent or buy a 20’ shipping container to store their lawn and garden equipment, outdoor patio furniture, or any other bulky outdoor goods that require safe storage. Once locked, these containers are virtually impenetrable, being made of high-quality steel. They are also safe against any kind of weather that might occur, even the high winds of a strong storm.
Commercial users have found even more uses for high-quality shipping containers. Retail store owners can store all kinds of goods in them, for instance, retail goods that will eventually be sold to the public. The containers are also excellent for storing office equipment, even valuable computer equipment or other office furniture like chairs, desks, cabinets, etc. In short, there is literally no other kind of storage container that performs with the same kind of reliability as a shipping container, in all kinds of weather and under virtually any conditions. To learn more about all the benefits that accrue to the owner of a shipping container, you should visit this site.
Using your shipping container as collateral
When you’re trying to purchase a shipping container, you can actually have it financed just on its own value. In the same way that you might purchase a car or truck, the equipment itself serves as collateral in any kind of loan process. If you should default on your loan, the original owner would simply take possession once again, so they would not lose any value through the arrangement. In fact, many business owners finance equipment needed to operate their companies in just this manner.
Since the equipment itself has considerable value, just like storage containers do, it isn’t really necessary to provide any other form of collateral. In this sense, you would actually be using the value of the shipping container to serve as collateral for its own purchase. Construction companies often purchase heavy equipment like tractors, bulldozers, dump trucks, cranes, and high lifts on the same terms, and it has come to be an accepted business practice.
However, your shipping container does have a certain book value, and it does not lose much of this value over time, because even a container that is 10 or 20 years old can still provide all the storage capabilities needed. Given that shipping containers retain their value quite well over time, it would be entirely possible for you to use your shipping container as collateral for the purchase of some other equipment or asset that you really need.
Here are some of the benefits of using your shipping container(s) as collateral:
- Bigger loans – when you use the value of your shipping container to finance some other purchase, it’s very likely that the amount of money you can borrow will be considerably larger. Lending institutions are much more likely to lend larger sums of money when the risk is mitigated, which it would be by using your shipping container as collateral. The value of shipping containers can range anywhere from $1,000 to $5,000, and that value could be even greater if you have made any enhancements to your containers, for instance adding lighting, heating and cooling, additional doorways or windows, extra locks or security features, and possibly even a reconfiguration of the interior for working or living in the container.
- Lower interest – you will probably qualify for a lower interest rate when using your shipping container as collateral, because again, there is less risk for the lender. Knowing that any default on the loan will simply mean the lender has the right to take possession of the container makes the entire transaction a lot safer for the lender. Over the course of your loan, that lower interest rate could potentially save you hundreds if not thousands of dollars. That makes it highly desirable to get the lowest interest rate possible.
- Greater approval rates – it is much more likely that your loan application will get approved if you offer something substantial like a shipping container as collateral. Again, it’s all about the risk to the lender – when there is a relatively low risk of defaulting on a loan, it becomes much easier to approve a loan. If you’ve had trouble securing funding on an unsecured loan, it could be that you’ll have much better luck when you offer a shipping container as collateral for your loan application.
- Building great credit – when you use your shipping container as collateral to purchase something else, you’ll have an opportunity to start building a history of solid credit. This can be extremely important to your future, especially if you’re a business owner who will likely require funding again in the future. There are all kinds of opportunities that can come up that you may want to take advantage of, and if you have established a history of good credit, you will be in good shape for potentially securing the funding you need to act on those opportunities.
- Overcoming bad credit – if your credit is already less than perfect, it is not likely that any lending institution will look favorably on your loan application. However, you might be able to overcome even a long history of bad credit if you offer up a valuable asset as collateral for your loan. Lenders will not care so much about your past troubles, provided that you can give assurance that they will not lose money by lending an amount to you. Even if you were to default on your loan, the shipping container would simply be taken over by the lender, and their financial position would remain intact.
In summary
Shipping containers are valuable assets, and they can be used effectively by almost any individual or business that has enough space to have one setup on the premises. Because they have such great intrinsic value, that means they can be used in financial transactions, as collateral to purchase some other type of asset. You are far more likely to be approved for a loan when you can offer some kind of collateral with your loan application. Lenders are more apt to fund you when they have little or no risk involved with the transaction. Of course, it will then be incumbent upon you to make sure you keep current with all your monthly loan repayments, so you don’t risk losing your valuable shipping container to repossession.
