Access to Finance is Possible even without Collateral

Many lenders demand that small businesses provide security for the loan they require – this is called collateral.

Collateral may be in the form of money, or a well-off family member who is prepared to guarantee the repayment, or a valuable asset (such as a house) that can be sold in the event that the business cannot repay the loan.

Either way, the lender wants to know that they will not lose money if your business cannot afford the loan repayments. If you need more information on collateral and how it works, visit the Finfind – access to finance website.

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