Collateral is the property, cash or other valuables that you will put up as security for the loan. If you fail to meet your loan obligations, the lending institution will probably take possession of the collateral securing the loan to help pay it off. The lender will put a value less than yours on your collateral. To give you a better idea of the value of your collateral, we have calculated the collateral as a lending institution would. You start receiving points when your collateral is worth 40 percent of the loan.
List all collateral. Please enter numerical numbers rounded to nearest dollar and omit punctuation, for example: for $100,000.00, please enter 100000. If you place a comma in the numbers, "NaN" will show up in the total box. Then press "Total Value." The Review will calculate the total value of your collateral. The total IS NOT all the values added together, other factors like market value and depreciation have been taken into consideration.
"To secure the loan, the borrower must pledge available business and personally owned assets. Loans are not declined when
inadequate collateral is the only unfavorable factor. Personal guaranties of the principals are required." --Small Business Administration
Press "Calculate Percentage." This number represents the percentage
of collateral you have versus the loan amount.
After you have printed your collateral information, please proceed to the
next section by clicking on "Score" in the left-hand column or the arrow to the right.