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What is business loan collateral?

April 26, 2017Business collateral loan

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What is business loan collateral?

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Loan collateral comes in the form of identifiable personal assets. These assets are used by lenders and investors as assurance that they will have some payment or recourse if a business was to default on their loan. Although not required for all loans, when it is, collateral is an extremely important aspect of your loan application and a heavy factor in securing financing.