Personal guarantees and collateral are both ways of promising a lender that you’ll make good on your debt. You may have to offer both to get an SBA loan. Collateral ties a loan to a specific asset, like your business’s inventory or your home, which the lender can seize if your business can’t repay the…
The article SBA Loan Collateral vs. Guarantee: What’s the Difference? originally appeared on NerdWallet.
