Man Proposes, God Disposes

Have you ever heard the quote above? This saying, originating from an English proverb meaning "Man plans, but God decides," can happen anytime and to anyone. Often, people make very detailed plans, yet reality may bring circumstances beyond what was expected, including issues related to budget and financial allocation.

Those with a steady income usually prepare a plan for their income and expenses. This is done to ensure that their spending does not exceed their earnings. However, as the proverb reminds us, humans can only plan—what happens next is up to God.

Unexpected situations may arise that require a significant amount of funds. Even for those who usually make monthly financial plans, urgent financial needs can be quite challenging—especially if the amount needed is large. In such cases, collateral or guarantees are often required to secure the funds.

Here are four types of collateral that can be used for urgent financial needs:

Land and/or Buildings
Collateral in the form of land and/or buildings is commonly used. This can include vacant land, productive land, houses, shops, warehouses, factories, shop-houses (ruko), or office buildings. The condition of the land or building and the surrounding environment are important factors that determine the loan amount or eligibility as collateral.

Vehicles
Vehicles are also frequently used as collateral. Nowadays, almost every household owns at least one vehicle. Common types of vehicles used as collateral include cars, motorcycles, trucks, and similar. The vehicle’s condition will affect the loan amount that can be approved.

Precious Metals
The third type of collateral is precious metals, most commonly gold. Gold is widely used as collateral in Indonesia. One drawback is that the loan value is usually calculated based only on the weight of the gold, without considering design or other factors.

Agricultural Products and/or Livestock
This type of collateral might be less familiar but is still used, especially in regions dominated by farming and livestock. Collateral in the form of crops or animals typically comes with a short loan term, usually between 1 to 3 months.

Those are four types of collateral that can be used for urgent funding needs. If you ever face an unexpected financial emergency, you can visit https://www.buanafinance.co.id/ButuhDana/ for assistance in solving your urgent funding needs.