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Applying for a sba loan_how to value comic collection as an asset?

Started by boomtown,

14 posts in this topic

boomtown

boomtown

Posted
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I'm doing the paperwork for a sba loan & listing my assets. I've got a comic collection that lists at approx $300,000 by Overstreet. Obviously, if it had to be moved quickly it's probably more around $35,000 to $50,000.

 

Any ideas on how to list it as an asset? Also, any good terminology to list it under other than comic book collection? I assume it will be a huge red flag if I listed it as a $300,000 comic book collection. Maybe "Antique Paper Memorabilia"?

 

Any thoughts/help appreciated.

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cd4ever

cd4ever

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I'm doing the paperwork for a sba loan & listing my assets. I've got a comic collection that lists at approx $300,000 by Overstreet. Obviously, if it had to be moved quickly it's probably more around $35,000 to $50,000.

 

Any ideas on how to list it as an asset? Also, any good terminology to list it under other than comic book collection? I assume it will be a huge red flag if I listed it as a $300,000 comic book collection. Maybe "Antique Paper Memorabilia"?

 

Any thoughts/help appreciated.

Big words....hurt Hulk.
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fantastic_four

fantastic_four

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I can't imagine that your bank will count them as an asset because there's no way for them to guarantee they won't "disappear" if they're forced to come looking for your assets because you default on your loan. They almost always will only count assets that they know they can legally and logistically come and claim ownership of.

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boomtown

boomtown

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I can't imagine that your bank will count them as an asset because there's no way for them to guarantee they won't "disappear" if they're forced to come looking for your assets because you default on your loan. They almost always will only count assets that they know they can legally and logistically come and claim ownership of.

 

I assumed that anything could disappear. Vehicles & bank accounts are included under my assets, but could change or disappear over time.

 

I understand they couldn't be used as collateral but figured they needed to be listed as an asset.

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shadroch

shadroch

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I would think a consideration would be what they are insured for, and how long you have had the insurance. Having a seperate policy on your books and being able to show you've had it for X years and for Y amount would help immensely.

also helpful would be your keeping them in a saftey deposit box or safe.

From my experiance, all the SBA really cares about in the end is your house. If you have equity in your home, you have a much better chance of getting the loan.

Off-hand, I don't think I'd list any book with a value under either $100 or $250, and I'd value them using mycomicshops buy list. It's really easy to enter the books and show a definite offer. More realistic than Overstreets pie in the sky.

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Calamerica

Calamerica

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I can't imagine that your bank will count them as an asset because there's no way for them to guarantee they won't "disappear" if they're forced to come looking for your assets because you default on your loan. They almost always will only count assets that they know they can legally and logistically come and claim ownership of.

 

Nice comics!

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hockeyboy13

hockeyboy13

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you can list them as an asset but the bank probably won't use them in their assesment

of your worth. HOWEVER,if you list it on your application and you go BK,then when they come to collect said asset they better be there AND worth what you claim otherwise you are guilty of fraud..a federal offense.

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MrBedrock

MrBedrock

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you can list them as an asset but the bank probably won't use them in their assesment

of your worth. HOWEVER,if you list it on your application and you go BK,then when they come to collect said asset they better be there AND worth what you claim otherwise you are guilty of fraud..a federal offense.

If I'm reading this right you are saying the bank won't use comics in their assessment of your worth. Therefore you should list comics on your application for employment at Burger King. But if the bank comes to Burger King to get their lunch order you better have your comics with you or you will be in a Whopper of trouble.

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thehumantorch

thehumantorch

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you can list them as an asset but the bank probably won't use them in their assesment

of your worth. HOWEVER,if you list it on your application and you go BK,then when they come to collect said asset they better be there AND worth what you claim otherwise you are guilty of fraud..a federal offense.

If I'm reading this right you are saying the bank won't use comics in their assessment of your worth. Therefore you should list comics on your application for employment at Burger King. But if the bank comes to Burger King to get their lunch order you better have your comics with you or you will be in a Whopper of trouble.

 

hm suddenly, I'm hungry....

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mintcollector

mintcollector

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Be very careful when listing this kind of collectible on an SBA loan. In most cases they will ignore it, although as one board member has pointed out, it can lead to fraud if the books are not there; should something go wrong.

 

I know coins are sometimes listed as an 'asset' and some advise against listing them as an asset as well.

 

Personally, I wouldn't even mention it. No offense, but if a majority of your net worth is tied up in collectibles, I would strongly look at your financial position and ask if you are ready to open a business. I am by no means suggesting this is the case, but I know people who literally have storage units full of high quality collectibles and very little in the way of liquid investments and cash; then wonder why they are denied bank and SBA loans...

 

The advice is always the same; if you are serious about the business, sell some of the collectibles to raise the cash. It is possible that the bank or even the SBA may recommend this if it turns out you are too 'top heavy' in hard assets. These kind of assets are very hard to value, by traditional standards.

 

This is just my 'two cents,' and you are welcome to ignore it; but I do wish you and your new venture well. Also feel free to let us know what you are planning to do, as maybe we would like to be future customers...

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hockeyboy13

hockeyboy13

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you are reading this correctly mr. burger king boy. they take a dim view of collections like this because it is not something they can wrap their heads around. you got hard material things they relate to? cars,machinery,trucks, STUFF.

 

they may take it into consideration but the only time it will really matter is when they come to seize the stuff in BK.

 

Now you can barter individual books sometimes. a guy in smalltown iowa did it in the nineties for his spiderman 1. they took it as collateral and gave him 70% of the books value and i believe that is all he borrowed. only time i have ever heard of this.

 

so take your spideys down to taco bell and see how well you do!!

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