 Part of the CCC Financial Group of Companies - Bringing you on-line loans for over 10 years.
|
| SECURED LOANS A loan backed by assets belonging to the borrower in order to decrease the risk assumed by the lender. The assets may be forfeited to the lender if the borrower fails to make the necessary payments. |
|||
| COLLATERAL This usually consists of tangible assets such as real estate, equipment, accounts receivable, or inventory. Sometimes intangible assets such as patents, company name, or future cash flow can be used as collateral. Often a borrower's guarantee, either corporate or personal, is required. Loans having collateral are called secured loans, collateral-based financing, equipment-based financing, real estate financing or asset-based financing. Lenders almost always require an appraisal of fixed assets by a national appraisal firm acceptable to the lender. Lenders often rely on the borrower's accounting systems for values of A/R and inventory. |
|||
| ASSET-BASED FINANCING This is a loan secured with collateral. Often this is a revolving credit line secured by accounts receivable and inventory. It can also refer to term loans secured by equipment or real estate. The lender usually has a first lien on these assets. |
|||
| Part of the CCC Financial Group of Companies - Bringing you on-line loans for over 10 years.
|