Glossary
Collateral
Collateral is something of value, like property or equipment, that a borrower pledges so the lender may take it if the loan is not repaid.
What it means for a shop owner
It can lower the rate because the lender takes less risk, but you risk what you pledged. Read exactly when the lender may take it. If you can, do not pledge what your daily work depends on.
A worked example
You borrow 20000 and pledge equipment worth 25000. If you stop repaying, the lender may take the equipment.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes