SBA Loan Collateral vs. Guarantee: What’s the Difference? – Rosalie Murphy

Personal guarantees and collateral are both ways of promising a lender that you’ll make good on your debt. You may have to offer both to get an SBA loan. Collateral ties a loan to a specific asset, like your business’s inventory or your home, which the lender can seize if your business can’t repay the…

Rosalie Murphy writes for NerdWallet. Email: rmurphy@nerdwallet.com.

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