In order to ensure that the lender will get their money back in the event a business folds, many lenders require borrowers to place their valuable assets as collateral in order to get business loans. That way, if a borrower is unable to repay his or her loan, the lender can seize or sell the … Read more

A secured loan requires collateral, such as a vehicle or property, as security to ensure repayment of the loan. An unsecured loan does not require any such collateral, but as a result, the APRs are usually higher since the lender is taking more of a risk on the borrower.

Almost all traditional lenders require candidates to provide a written strategic business plan that describes the character of the business, target audience, character of competition, marketing strategy, and listing of likely expenses. Lenders frequently require financial models and documents such as projected income statement, balance sheet and profit statement.