Collateral

what is cash collateral

By Jean Murray. US Business Law / Taxes Expert

Jean Murray has the education and experience to help you become an expert in your small business, and to provide you with information about business legal and tax issues. With an MBA and a PhD in entrepreneurship, she brings almost 30 years of experience and knowledge to these important business subjects.

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DISCLAIMER: I am not a CPA or attorney, and nothing on this site in articles, emails, blog posts, or other communications is intended to be tax or legal advice. The purpose of this site is to provide general information to readers. No claim is made regarding the accuracy or legal status of information on this site. Federal, state,

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Collateral describes the assets you pledge in order to receive a business loan. Collateral may include business or personal assets, such as the equity in your home or car. The assets can then be seized by the lender if you fail to pay on the loan. If you have collateral, you can get a secured loan at better rates than if you had no collateral. Loans without collateral are unsecured loans .

One of the reasons it is more difficult to receive a loan for a startup is that there are not yet any business assets which can be used as collateral.

Source: biztaxlaw.about.com

Category: Bank

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