CloudsCreditRepair™ FAQ

What is collateral?

Collateral is an asset pledged to a lender that the lender can seize if the borrower fails to repay the loan.

Explanation

Secured loans backed by collateral typically carry lower interest rates and easier approval criteria than unsecured loans.

Common business collateral includes real estate, equipment, inventory, accounts receivable, and in some cases personal assets.

Examples
  • Equipment securing equipment financing
  • Real estate securing a mortgage or 504 loan
  • Inventory and AR securing a bank line of credit
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