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4 Types of Business Collateral Used to Secure Loans

Posted by kontol123 on February 26, 2022
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4 Types of Business Collateral Used to Secure Loans

With a secured loan, the collateral that you submit is also at risk. However, unlike your reputation, profits, and credit history, you have choices when it comes to choosing the type of collateral you’re willing to risk.

The reason that you’ll have options is because there are several types of business collateral that can be used to secure a loan. Of course, as with any financing-related decision you make, there are benefits and drawbacks related to the collateral you choose.

In this blog post, we’ll review four types of collateral you could use to secure a loan. In addition, we’ll explore how your choice of collateral will affect your business’s plans.

1. Real Estate

As you may know, using a home as collateral for a small business loan is a viable option for many entrepreneurs.

For business lenders, real estate is an attractive way to secure a loan because it holds its value well. Entrepreneurs may also benefit because real estate is generally worth at least a couple hundred thousand dollars, which gives owners a chance to secure larger loan amounts and better loan terms. Continue Reading

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