Beyond credit history, another important thing that lenders consider while deciding whether to offer your business a loan is the amount of collateral that you have.

We tend to work with clients on providing education and resources on how to leverage their business financials in a legally compliant and ethical way. 

Often lenders are looking at what you would use as collateral.

Collateral is an additional form of security that can assure a lender that you have a second source of loan repayment. Assets such as equipment, buildings, accounts receivable, and inventory are considered possible sources of repayment if they can be sold by the bank for cash. Collateral can consist of assets usable in the business as well as personal assets that remain outside the business.

You can assume that all assets financed with borrowed funds will be used as collateral for the loan. Depending on how much equity was contributed by you toward the acquisition of these assets, the lender may require other business assets as collateral.

Your home or personal assets may be considered collateral, based on one of the following criteria:

• The lender requires the residence as collateral.
   
• The equity in the residence is substantial, and other credit factors or sources of collateral are weak.
   
• You operate the business out of the residence or other buildings located on the same parcel of land.

In our Program we will will consult, advise, and educate clients on available resources to access funding.