A secured business loan requires collateral such as property, machinery, or inventory, offering businesses access to larger loan amounts with lower interest rates. Since these loans are backed by assets, lenders provide longer repayment terms and flexible financing options. They are ideal for large capital investments, business expansion, or equipment purchases. However, failure to repay can lead to the seizure of pledged assets, making it essential to have a solid repayment plan before applying.
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Home/Finance and Money Management/Secured Business Loan: Low-Cost Funding with Collateral
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