How Collateral Support Helps Enterprises Access Large-Scale Capital
When we talk about collateral, we end up thinking of losing assets and gaining liability, but that is not the full truth. Collateral support for businesses refers to an asset a borrower pledges to a lender to secure a loan. This collateral support acts as a guarantee that the lender (like private banks, businesses, or VC) can seize and sell if the borrower defaults on the repayment term. In simple terms, landowner-backed collateral reduces the risk for lenders and also builds trust between lenders towards the business in the market because of collateral security.