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If the loan was in default, the financial institution could seize the asset and liquidate it to try to get many of the principal again so that they would not must take a loss on the money that was owed to them. In a time when persons are discovering it exhausting to make ends meet, businesses are falling by the wayside. Traditionally, cash was borrowed from banks and the financial institution made their profit on the interest that was paid by the borrower for the privilege of working with them. With money for operations arduous to return by, many businesses are searching for alternate sources of enterprise loans that weren't accessible as readily just a few years ago. Credit score scores had to be high for enterprise homeowners to get the money they needed for the whole lot from payroll to inventory and collateral was often required to secure the loan. This collateral was used to mitigate threat.
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