Monthly Archives: September 2021

What is Collateral? And Why Does it Matter?

Collateral is an asset(s) a lender accepts as security for a loan, finance, or lease. It is something you would commit to guarantee a loan. Almost all equipment, vehicle, or home loans will require some sort of collateral assets.

Loan collateral is purely for the protection of the lender. The lender wants to ensure you will pay for the loan or lease they are providing to you. Thus, if you default on your payments, it is possible that the lender may attempt to repossess an asset or put a lien on it.

The more confidence you can give the lender in your ability to pay back the loan, the more likely you will get approved with better terms.

So how does collateral work in equipment financing and equipment leasing? Let’s explore…

Understanding the Pros and Cons of this Popular Financing Option

In the market for new or used equipment? Maybe your business is in a growth cycle, changing strategies or replacing equipment that is past its prime.

Whatever the reason, you’re likely thinking about financing. Should you lease or buy? What financing strategy will prove most affordable—and help you stay flexible for the future?

Getting a clear picture starts with comparing the two basic financing types. Leases and loans both have a lot to offer. You can optimize your return on investment by identifying the format that best suits your business needs.