Chapter 8
Assets You Can Pledge to Support Your Business Loan*
Abstract
Lenders take collateral to reduce the risks of some business loans, but most credit approvals are based on repayment capacity. Collateral should not act as a replacement for due diligence. Values may be impaired by the very factors that led to the diminished recoverability of the credit itself in the first place. Your lender works with policies and procedures governing suitability, value, and enforceability. Businesses not capable of unsecured borrowing generally find themselves in that position for various reasons.
Keywords
loan agreement
formula-based loan
uniform commercial code
accounts receivable financing
formula-based loans
secured loan agreement
accounts receivable ...
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