Glossary

Secured financing

Secured financing is any business financing that is backed by collateral, an asset the business pledges, such as equipment, inventory, or receivables. If the business cannot meet the obligation, the lender can look to the pledged asset. Because there is an asset behind the arrangement, lenders offering secured financing look at both the collateral and the business’s broader profile. Equipment financing is a common example. A funding marketplace can match a business to lenders across both secured and unsecured products.