Collateral is an asset used to secure a loan. When you pledge collateral, the lender takes on less risk — which means they can offer you a better rate and access to significantly larger capital amounts than unsecured products allow.

How Collateral Works

When you pledge an asset as collateral, your lender has the right — in the event you stop making loan payments — to take possession of the collateral and sell it to recover the outstanding balance. The primary benefit to you is access to larger loan amounts at more favorable terms.

Requirements

Collateral must be commercial property with at least $100,000 in equity
Minimum $20,000 in monthly revenue
4+ months in business
No minimum credit score required

Common Questions

Frequently asked about Collateral Based Loans.

RFR Capital primarily accepts commercial real estate with a minimum of $100,000 in equity. The collateral is used to secure the loan, which typically results in better rates and higher loan amounts.

No minimum credit score is required for collateral based loans. The strength of the asset and your business revenue are the primary factors in approval.

In the event of default, the lender has the right to take possession of the collateral to recover the outstanding balance. RFR Capital works with clients to structure repayment terms that fit your cash flow to minimize this risk.

Collateral Based Loans

How Collateral Works

Requirements

Frequently asked about Collateral Based Loans.

Ready to apply for Collateral Based Loans?