Secured Business Loan
A business loan backed by a specific pledged asset, such as equipment, real estate, or receivables, which the lender can claim if the loan isn't repaid.
Pledging collateral generally gives a lender more confidence to approve larger amounts, longer terms, or lower rates than an unsecured loan, since the asset reduces the lender’s risk if the business can’t repay.
The tradeoff is that the pledged asset is at risk in a default, and the loan amount is often tied to the asset’s appraised or estimated value rather than the business’s full financing need.
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