When you need business financing, an often overlooked method of financing is a secured small business loan. Unlike other loans, a secured business loan is available to any business owner that has the collateral to secure it.
What kind of collateral is required for a secured business loan?
Banks are looking for collateral that keeps its value. So they tend to like real estate and business equipment. Some examples of As long as there is some high-value property available for collateral, you’ll most likely get a secured small business loan. This collateral can be anything from the businesses inventory, to equipment, to the accounts receivable for your company.
However, the risk involved is that defaulting on the loan means the lender now owns that collateral, which potentially means they’ll take any of your businesses earnings.
On the plus side, the interest rates will generally be lower than other financing methods since there is collateral and therefore less risk to the lender.
Check out our infographics below:
Share this Image On Your Site
Business Financing Even With A Bad Credit: Unsecured Small Business Loans
Business Financing Even With A Bad Credit: Loans From Family or Friends
Kinds of Bad Credit Business Financing
Improve Your Bad Credit Score in 8 Simple Steps