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In this video, we're going to talk about "Do small business loans require collateral?
Do small business loans require collateral?
The answer is Yes and No.
It really depends on the lender and the type of a small business loan.
So, it's a really important question that you must to ask if you're applying for any
type of small business loan.
So, there are number of different small business loan products out there that don't require
any type of a hard asset collateral.
And I always recommend that if you can get any financing without collateral, it's always
a better thing.
Why put up collateral if you don't have to.
And especially if there's another type of small business loans that's out there that
doesn't require it.
So definitely ask the question.
SBA loans will take collateral if you do have it.
So, it's really question that you want to ask to make sure when you're working with
your SBA lender or whoever that you're working with.
If they're going to put a lien on the business or your...
Whether it's a commercial piece of property or a personal piece of property.
You know, the SBA will sometimes look to file lien on personal assets as well too so it's
a really important question you want to ask especially if you're looking at an SBA loan
product.
So, there is a number of other lenders out there now that offers small business loans
that aren't banks.
Some of those lenders will file UCC on your business and that UCC will attach to your
receivables and a number of other things and will consider that collateral.
But those products aren't actually taking any type of hard asset collateral.
So, there are numbers of small business loan products that're out there that are not from
banks today that don't require any hard asset collaterals.
They will file UCC again to your business which is a business lien.
And those lien usually will attach to things like receivables and
some other things in the business but don't necessarily require a hard asset collateral.
Like real estate or a piece of equipment.
There are some small business loans that do require collateral.
And that's not necessarily a bad thing.
But again, if you can get a small business loan without collateral, probably makes sense
to explore that route.
But collateral can come into a play as if you have something that's paid off a piece
of real estate.
A large piece of equipment that's been paid off.
If you're able to use that as collateral, the benefit to that might be...
You might be able to approve for a much larger loan amount.
Meaning, there's small business loan products out there that you can get approve for.
100, 150, 250 thousand.
Up to usually about a half million dollars.
And sometimes more.
But that's based on your sales.
And if your sales don't match up to the dollar amount that you're looking for, you might
be able to utilize a piece of collateral to increase that loan amount.
So, it's definitely another question that's worth asking and exploring.
So again, there are numbers of small business loan product that're out there today that
don't require collateral.
But there's a lot of different options out there.
And funding that right lender that makes sense for you can be a job within itself.
Check out the link below.
My company --National Business Capital.
I actually created a platform that has over 75 lenders on it.
And we've literally just simplified the process to get financing...
We've made it so easy.
We've eliminate unnecessary paper work.
Taking a headache out for for the business owner and having to shop around from lender
to lender.
So, check out the link below and we can easily match you with the right lender that makes
sense for you.
On top of that, the value that we add is...
You can call us and speak to us if you want to.
We can go through and talk with you.
The other value that we offer to our clients is the ability to speak with someone who's
got experience in all the different business financing products that are out there today
on the market.
There are a lot of different products that are available.
There are a lot of different lenders and really can be confusing.
So you can call into us.
And we can kind of go through kind of understanding your business, understanding of your needs.
And that...
One of my team members can talk about the financing products that might be available
for you and bring a few different offers back to you that you can choose and pick which
one may makes sense for your business.
And one of my team members can bring back multiple options back to you so you can pick
the best one that makes the most sense for you, your business and your opportunity.
I hope this was helpful.
If you have any comments or questions, please feel free to throw a comment in below.
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I'll be filling out tons of videos with more helpful tips just like this.
Thanks for tuning in, have a great day.