What Assets Are Eligible For Collateral When Applying for a Loan?

When applying for a business loan, your financial lending institution will want to know what you can offer for collateral.

Real estate is the most commonly used asset for collateral. Real estate can be your home, business property or other property you own.

Other assets that some banks consider using for your collateral include bonds, stocks, equipment (generally expensive or specialized equipment, not your home computer)

Do keep in mind that the banks will very rarely give you full market value credit for your assets. After all, banks are in the business of loaning money and earning interest, not in the business of selling houses or other collateral assets.

Some banks may only accept certain types of collateral, so if you prefer to use stocks for your collateral, be sure that it is an acceptable form of collateral with your chosen financial lending institution.