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BUSINESS FINANCING GLOSSARY

Secured Loan

A loan backed by collateral the lender can claim on default. Lower rates than unsecured debt, because the lender takes less risk.

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Related terms

Collateral→An asset pledged to secure a loan that the lender can seize if you default. Equipment, real estate, receivables, and inventory are common forms.Default→Failing to meet the terms of a loan — usually missed payments, but also broken covenants. It can accelerate the full balance and trigger collateral seizure.

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