Domain names can be used as collateral to secure loans that will assist in the expansion of your business or they can be used as security against selling your domain name. This is just like any other valuable kind of property.

Although every circumstance is unique using a service that brokers domain names can be of some use. Here is how you can get a loan using your website domain name as collateral.

Do I Have A Valuable Domain?

The vast majority of domains aren’t worth more than the $10-$25 per month that it takes to keep them registered. Still, it is worthwhile to receive a free evaluation for your domain if it is composed of an appealing term or if it hosts a profitable website.

Who Borrows Money Against Your Domain?

Capital loan companies such as Lenovo and Domain Capital will lend up to $100,000 against domains — brick and mortar banks typically do not.

Part of the reason most banks don’t lend money against domain names is that they aren’t subject to as many government regulations as traditional loans. For instance the loan collateral (the domain), may not have an established value like a piece of real estate or a car does. There also aren’t set interest rates for domains, and many banks simply don’t have the structure to arbitrarily set their own rates for these types of loans.

Borrow money against your domain is a good option depending on your position.

How Can You Borrow Money Against Your Domain?

The loan amount for a domain name will typically be less than the wholesale value of the name. The amount lent may be fluid, as well – the attractiveness of a domain can vary over time. 

The application process is similar to that of any other type of loan. You’ll fill out an application, including proof of ownership for the domain name you wish to borrow against. An underwriter will review your application and approve a loan for a certain amount. Borrow money against your domain name can give you a short term solution for your problems.

The interest rate is based on risk involved, although Domain Capital caps out at 15% per year.

What Happens If I Default On My Fault?

As the Internet continues to be integrated into our everyday lives the need for a fast reliable connection becomes imperative. Fiber cable networks have the capacity to support our online needs for decades to come but still have a long way to being fully integrated into our infrastructure.

Call your Internet provider to find out the status of their fiber network and see if you can get 1 gig Internet where you live. Borrowing money against your domain name can give you a sense of relaxation.

Find Out The Value Of Your Domain

Borrowing money against your domain could give your business the jump start it needs. If you need professional advice about taking out a loan against your domain name, we’re here to help.

Contact us today for a free domain name valuation or talk to one of our brokers about the lending process.