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Did you know that when you apply for sba business loans, many financial lending institutions will require you to offer collateral in order to receive approval for small business funding?
The most commonly used asset for collateral is real estate. So the type of real estate that you could use would be your home, your business property or any other property that you own (as long as you have enough equity).
Now, if you do not have equity in your home or other properties, you might offer other assets that could be collateralized like your accounts that have bonds or stocks. Another source of assets you could use as collateral would be expensive equipment or specialized equipment. Note, your home computer would not be considered expensive or specialized equipment.
Also keep in mind that the banks will very rarely give you full market value credit for your assets. After all, banks are in the business of loaning money and earning interest, not in the business of selling houses or other collateral assets.
And on top of that, even though you are offering let say your stocks as collateral, some banks may only accept equipment as collateral. So you will need to search for a lender that will accept the form of collateral you can offer.
Wishing You the Best,
Karen Schimpf
Toll: 866-400-8630
Phone: 512-650-8630
http://bizloansconnections.com/
Posted by Karen Schimpf on November 16th, 2010 8:43 AMPost a Comment (0)
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