Collateral Business Loans in the US - NextGen Capital Solution

Collateral Business Loans

Collateral business loans from NextGen Capital may offer lower rates than other forms of alternative funding. Small business owners may also qualify for higher funding amounts compared to unsecured loans or lines of credit.

What is a Collateral Business Loan?

Collateral business loan is a secured loan that uses commercial real estate as collateral to reduce the lender’s risk, which in turn helps lower the loan cost. Since the funding is secured, small business owners typically qualify for higher amounts compared to revenue-based financing that isn’t backed by “hard” collateral.

NextGen Capital offers collateral business loans ranging from $50,000 to $250,000, with no restrictions on how you use your funds. The terms of your loan will depend on factors such as the value and type of collateral provided, your business’s cash flow, and the business owner’s credit history, background, and repayment record. At NextGen Capital, we prioritize responsible lending and never accept a borrower’s primary residence as collateral. We only accept developed property that is not the business or property owner’s primary residence.

Who should apply for a collateral business loan?

Collateral business loans can benefit medical practices, construction companies, manufacturers, automotive businesses, business services, and more. No matter your industry, our expert Funding Advisors at NextGen Capital will work closely with you to identify the best funding option to support your business goals without straining your cash flow.

Businesses that need low-cost capital for a short period

Businesses seeking a larger or longer-term funding option compared to a merchant cash advance or other small business loans

Businesses making a significant purchase, such as new equipment or additional inventory

Businesses planning an expansion, merger, or acquisition

How to Get a Collateral Business Loan

Apply

Prepare three months of bank statements and other necessary financial documents. For a quicker approval process, securely provide access to your bank account’s transaction data.

Choose Funding

A Funding Advisor from NextGen Capital will contact you within an hour (during regular business hours) to complete your application and discuss your available funding options.

Get Funded

Once you and your Funding Advisor select the right funding option for your business, your loan can be approved and funds deposited within 24 hours.

Set Repayment

Repayments will be automatically deducted based on your business’s daily or weekly debit and credit card transactions, ensuring a manageable payment structure.

How to Use Collateral Business Loans

Collateral business loans from NextGen Capital offer flexibility, allowing you to use the funds in ways that best support your business. These loans are especially beneficial for:

Investing in growth strategies, upgrading equipment, or making other high-value purchases that generate strong returns

Financing business expansion, mergers, or acquisitions

Capitalizing on seasonal opportunities, such as bulk inventory purchases to meet increased demand

With no restrictions on fund usage, NextGen Capital provides the financial support your business needs to thrive.

Take advantage of seasonal business opportunities such as purchasing inventory in bulk

Finance an expansion, merger, or acquisition

Collateral Business Loan Qualification Requirements

NextGen Capital Solutions collateral business loan requirements are lower than traditional lenders and other alternative funders. At NextGen Capital Solutions, we know that credit scores don’t tell the whole story, so we focus on the overall health of your business and the property. Here are some factors we consider:

Type of collateral—we don’t accept primary residences as collateral

Value of collateral, including a recent property appraisal, county tax bill, and real estate schedule

Business revenue

Cash flow

Vendor payment history

Collateral Business Loans Q&A

What assets can be used as collateral to secure a loan?

We accept developed property that is not the business or property owner’s primary residence as collateral. We will not accept your primary residence as collateral.

Do you offer collateral loans in Canada?

Yes, we fund throughout Canada. Learn more about alternative small business funding in Canada.

How long does it take to get funding for a collateral loan?

Funding from a collateral loan can be made available in as little as 5-10 business days. Speak with a Funding Advisor for more information.

How much collateral is needed for a business loan?

The amount of collateral you need for a business loan depends on the size of the loan you are seeking.