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What types of collateral would be required to secure a business loan?

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Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2019/01/30
Muhammad Suleman Aziz
by Muhammad Suleman Aziz , Operations Administrator , Pakistan Air Force

The amount of collateral is usually defined by factors like amount of loan, duration of payback, risks assessed in amount of loan taken (type of enterprenuership), etc 

Muhammad Hussain
by Muhammad Hussain , ACCOUNTANT , EPESOL PVT LTD

It is generally depends on volume of loan and banks terms and conditions. Usually businesses pledge Land or other fixed assets as a collateral as per banks' demand for loan. However banks' terms and condition vary depends on how is your relations with the bank and what is your financial health?

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

The collateral type are usually specified by the creditor but for any how the collateral value should be for minimum% of the loan value and its much better to be as much liquid.

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