Collateral Loans
Secure your loans as well as your business
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.
How Do Collateral Loans Work?
- The borrower pledges an asset to the lender to avail a loan
- The amount of the loan depends on the value of the asset
- Since this is a secure loan for the lender, the borrower can avail lower interest rates on the loan as compared to an unsecured loan.
Assets That Can Be Used as a Collateral
Any business asset can be used as collateral to borrow a loan for a small business. It includes:
- Future payments from customers
- Insurance policies
- Equipment or machinery
- Business investments
- Commercial property
- Any other business assets
- Automobiles
- Cash accounts
Secure Your Payments
Choosing a lender who can lend on flexible terms, lower interest rates are essential to secure the ease and flexibility of your payments. Our financial experts can help choose the qualified lenders for your small business needs.
How to Apply?
Applying for collateral loans is a simple 3-step process:
- Simply fill out a form to contact our consultants.
- They will contact you to retrieve essential business information.
- We connect you to suitable lenders with the lowest premiums and guide you through the process.
Ready to Grow Your Business?
Take the first step towards securing the financing you need with Your Finance Partners.
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