As revealed Thursday a new domain financing company has been formed, DigiLoan.com.

One quick note about the service, in principle it sounds good. In this economy people need cash, putting a domain down for collateral is a good idea. Just be careful with services like this. If you do not pay back the loan you will lose your domain name and whatever equity is left in it.

Here is the official press release directly from RickLatona.com.

Atlanta, Georgia USA – April 18, 2009 – RickLatona.com launches DigiLoan.com, a new sister company to the popular DigiPawn.com service.

Six years ago, Rick Latona launched DigiPawn, the first of its kind. The company started advancing cash using domains as collateral, a first for the industry.

Now, Rick Latona has formally announced DigiLoan. While similar to Domain Capital in structure there is one main difference. If you want to borrow money to buy a name from Rick’s newsletter or from one of their auctions, they will be more likely to help you out. Make no mistake about it. They are here first and foremost to sell domains.

This sister company of DigiPawn differentiates in a couple of important ways. First off, interest is annual. The deals are 3, 4 or 5 years long.  Also, They are interest and principal payments.

Short-term cash advances and very small needs will still be processed through DigiPawn but for the bigger amounts and longer term domain loans, please send your applications through DigiLoan.

Please take a moment to visit our newest addition to the Rick Latona family of companies.