If you are using physical collateral is it expected to be at a higher % than if crypto backed collateral is used?
Regards
Not necessarily, but unless we're talking about precious metals at spot price, the value of physical goods can be subjective. Collectibles are a prime example; not everyone has the means, knowledge, or time to sell collectibles for their highest potential value. So the lender may choose to apply a much lower value to the collectibles if they are used as collateral. In the event the borrower defaults on the loan the lender can sell them for below top-tier pricing, and is likely to recover his losses much sooner.
Each lender has his policies, some won't accept physical collateral at all. It's also worth noting that this is a global forum. The locations of the lender and borrower might make physical collateral impractical.
In your case, since you've already indicated your intent to
sell your collectibles, no one is likely to accept them as collateral for a loan. The rational is that since you've already attempted to sell them, you are very likely to take the loan and abandon the collateral with the lender.
