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What Assets
are Acceptable for Collateral?
When applying for a business
loan, your financial lending institution will want to know what you can
offer for collateral.
Real estate is the most commonly
used asset for collateral. Real
estate can be your home, business property or other property you own.
Other assets that some banks
consider using for your collateral include bonds, stocks, equipment (generally
expensive or specialized equipment, not your home computer)
Do 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.
Some banks may only accept
certain types of collateral, so if you prefer to use stocks for your collateral,
be sure that it is an acceptable form of collateral with your chosen financial
lending institution.
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