Collateral loans are the loans issued against collateral or security given by the borrower to the lender. In cases when the borrowers default on the loan, lenders have the ownership of the collateral to recover their damages.
Who Can Apply?
When the small business is under financial constraints, it looks for financial solutions that can best minimize its obligations and maximize its returns. Your Finance Partner can help you choose the best loan option. Collateral loans are applied when you have certain assets in your business’ name and are ready to pledge them against a loan. This loan is best for small companies who have a steady revenue stream and can pay back their loans in-time through their future receivables.