Fully funding your business can be an incredibly difficult and frustrating task. But it’s an issue that can easily be overcome as long as your company possesses one important thing: collateral. Collateral can be defined simply as something that your business owns that can be sold for cold hard cash, and in most cases, your business will have something the bank will accept as true collateral in order to reduce the risk of their investment in the long run. In short, a collateralized business loan can be a definite win-win situation for both you, and the bank as long as you don’t default on the loan in which case the bank will seize and then liquidate the collateral to recoup some of their losses. Whether it be property, savings accounts, inventory or other items being used as collateral, a business loan such as this simply allows the bank to hold the title or deed until the loan is paid in full.