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Is a small business loan usually taken out with the entire company as collateral? Rather than just based on normal loan terms and risk? (That sounds unlikely t
by danaris 2y ago
Is a small business loan usually taken out with the entire company as collateral? Rather than just based on normal loan terms and risk?
(That sounds unlikely to me, but I know little enough about the intricacies of business finance that it could be true...)
- tristor 2y agoYes. It's very common to collateralize a loan with the total assets of the company, and often with personal guarantee on top of this for small LLCs without significant assets or credit history.