When getting financing for your small business, the bank will often ask for you to provide something from you to guarantee that you will pay them back. This collateral, whether it is cash or an item, can help you get approved for the amount that you need. It also assures the lender that you will settle the debt or they can keep what you offered. Here are a few things that you can put down for a loan. 

Banking Products 

If you default on the loan that you are given, the financial institution will have to sell whatever you offered to them to recoup some of the cash that you owe. This is why accounts and products from the bank, such as certificates of deposits, bonds, and items like them are the ideal options for collateral. These can simply be redeemed for money and utilized by the organization that you are working with. It requires little effort on their end to compete. As you are applying for assistance, find out if you have any of these available to put down. You can also ask the representative of the company what they prefer when issuing funding to a business. 

Your Business Property

Your business may be small or new enough that you lack financial assets such as stocks and bonds. Another option that you can think about is the property that your company owns. This can be the land that your facility sits on, the equipment in your building, or the vehicles in your fleet. While this situation may work best for you, it may be less than ideal for the lender. These types of collateral can be a challenge for them to sell and get the dollar amount that they wish for due to the depreciation of the item in question. Contact your representative and ask what products they will consider when they process your application. 

Your Invoices To Your Customers

A popular idea to provide assurance to your lender as you attempt to secure a loan is to offer the invoices issued to your customers to them. Only certain financial institutions work with these, however, it can be an ongoing form of lending. Once you provide these accounts receivable notices as collateral to the bank, they pay you a portion of what is owed. They then collaborate with your client to collect the rest and send you the balance of the amount on the bill minus the fee you owe them.