18 Business Loan Requirements - Proof of Collateral

18 Business Loan Requirements - Proof of Collateral

When applying for a business loan, most often, traditional lenders will want to see that you have collateral. Collateral is an item of value that you are willing to give up should some unforeseen circumstances prevent you from paying back the loan.

Collateral can take shape and form of just about anything, including real estate holdings, your personal home, equipment, vehicles, and company inventory. Essentially, the items that you do use as collateral are at risk in the event that you default on your loan.

Alternative lenders, however, have a different approach and not all loan products require you to put down specific collateral in order for you to qualify. With more traditional institutions, generally, an appraiser is sent out to certify the value of whatever it is you are submitting for collateral. And with real estate loans, the collateral will be the land or building that you intend to purchase. The same thing goes with equipment loans; the equipment itself represents the collateral—meaning, if you don’t make payments, the bank will repossess the equipment.

At First Union, the last thing we want to do is scare you off. We are here to help small businesses get the cash they need for expansion, for weathering the storm, and for really whatever reason you require money. If you don’t have collateral, we would still like to hear from you, as there probably is a way we can help you find the financing needed.

With a streamlined application process and funding in as little as two days, there are no hoops for you to jump through to get capital fast. So if you do have a project in mind, or simply need extra cash flow, call us today and let’s get started together!

You’re reading part 12 of our 18-part series: 18 Business Loan Requirements.

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First Union Lending LLC is a dually licensed Lender/Broker with its main offices located at 4900 Millenia Blvd First Floor Orlando, FL 32839. First Union Lending LLC and its ads are meant for continental United States, including Alaska and Hawaii small business owners. Business Loans offered by First Union Lending LLC have varying rates and terms that can range from 30 - 120 payments and all rates and terms are based on eligibility of the business and its owners. The actual terms are based on credit, business history, industry, amount and terms. As an example, a $5,000 loan paid over 5 years at 8% would have a total repayment of $6,082.92 over the life of the loan. We use the latest encryption to protect sensitive information transmitted online, as well as run our own secure server network to ensure your information is protected offline as well. California loans made pursuant to the California Financing Law, Division 9 (commencing with Section 22000) of the Finance Code. All such loans made through VBJ Consulting, LLC, a licensed finance lender/broker, California Financing Law License No. CFL#60DBO78163

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