The difference between a liquid asset and an illiquid asset is that it can be turned to cash very quickly, while an illiquid asset is something you own, but when you need the money, you need to take the time to sell it to convert to cash.
A classic example of an illiquid asset would be the car you buy. Yes, it is an asset. However, it usually is a depreciable asset and sometimes will lose value over time. Once you buy the car, your hard-earned cash is trapped in it, and if you want to
use it, it is hard to do so without selling the car to the marketplace. Usually, you can not mortgage that car to any lender and try to get the cash out. However, with an AHA Car loan, we would be in a position to help you. We would look at your income
and living expenses, evaluate your current liability, and do our regular lending assessment.
In the end, if we feel you can repay the loan and the loan is suitable, we can take the vehicle as security and put a PPSR against it. The car is still yours, and you can still drive it, wash it, and love it. However, you then had turned an illiquid asset into a liquid asset of cash.
If you have a car, please come and talk to us, and we will be able to help you out. Apply online at www.ahamoney.com.au. We would endeavour to provide you with a lower interest rate compared to the competitors in the marketplace.