How does the collateral system work

[jbmac1967]

I might be looking into asking to borrow some BTC, either 1-2 BTC

As "collateral" i have 36 Silver 1oz coins,

Do i send the lender the coins, in return he sends the BTC, then if BTC is repaid he sends back the coins to me

Is that pretty much how it goes?

[OnkelPaul]

For physical callateral, yes (collateral can only work when the lender has complete control over it in case you default).
Since the shipping costs can be quite high (especially if you include insurance), altcoins are often used as collateral - transferring them is cheap and almost instantaneous.

Onkel Paul

[KWH]

Always check the Trust, even click on Untrusted Ratings and then Show Ratings. Unless the lender has a proven, impeccable record, use escrow for any collateral. Use due diligence for all transactions.

[jbmac1967]

How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK

[austin]

How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK

You can find a list of escrows here: https://bitcointalk.org/index.php?topic=108716.0

You will have to send your silver bullion to the selected escrow. The lender will then send the bitcoins to you. The escrow will hold the silver until you repay your loan, then send it back to you. If you don't repay your loan, the silver will be sent to the lender instead, which they may then sell to recoup their losses.

[YorkPeppermintPattiesSwag]

So besides physical possessions and altcoins, what else can be used as a collateral?

[mr smith]

How does the escrow work, and how do I find a reputable Escrow agent

And because my collateral is 36oz of silver bullion prefer them to be based in the UK

I work in London and may be able to provide assistance.
Please note i am a trader. How long do you require the lone for?
At best you are looking at sell price - 20%
it would probably be easier for you to try your local porn shop.
PM me if needed.

[Vod]

Please note i am a trader. How long do you require the lone for?

You are a trader, and cannot spell loan?   

[mr smith]

Please note i am a trader. How long do you require the lone for?

You are a trader, and cannot spell loan?   

YES carnt spell to save my life. thats why i buy and sell things. i assume you your command of English far superior to mine.