Collateral and Guarantees: What Strengthens Your Loan Request

Why security matters

Collateral gives the lender a second source of repayment if operating cash flow falls short. For the borrower, a well-structured security package can mean a larger facility, a lower margin and more flexible covenants.

Types of collateral we consider

• Commercial and residential real estate
• Trade receivables
• Inventory
• Plant and equipment
• Listed securities and cash deposits
• Intellectual property
• Contracts and offtake agreements

How collateral is valued

We apply an advance rate to each asset class to reflect how easily and at what value it could be realised. Cash and listed securities attract the highest advance rates. Specialised equipment and intellectual property attract lower ones. An independent, recent valuation always carries more weight than book value.

Presenting collateral in your request

The Collateral section asks for the main collateral type, estimated value in USD, valuation basis and date, location or jurisdiction, and a description. Be specific: a warehouse in Rotterdam valued in June 2026 by an independent appraiser is far more useful than a general mention of real estate.

Existing pledges

If any asset is already pledged or subject to a lien, declare it. Encumbered assets can sometimes still be used through intercreditor arrangements or by refinancing the existing lender, but only if we know about them from the start.

Guarantees

A parent or corporate guarantee is common where the borrower is a subsidiary or a special purpose vehicle. Personal guarantees from principal shareholders are sometimes requested for owner-managed businesses. Provide the guarantor's name, relationship to the borrower and estimated net worth in USD.

Insurance

Adequate insurance on the secured assets, and where relevant credit insurance on receivables, protects both parties. Mention your existing coverage in the request.

Unsecured requests

You may select No collateral offered. Senior unsecured facilities are possible for strong, cash-generative companies with moderate leverage, but expect tighter covenants and higher pricing than for an equivalent secured facility.