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What happens if I can't repay the loan?
Curious about Secured business loans
If you cannot repay the loan, the lender may take possession of the collateral that you had pledged. The lender has the right to sell the collateral to recover the loan amount. If the sale of the collateral doesn't cover the entire outstanding loan balance, the lender may file a lawsuit against you to collect the remaining balance. In such cases, your credit score will be negatively affected, and you may find it difficult to obtain credit in the future. It is important to understand the terms and conditions of the loan agreement and ensure that you have a plan in place to repay the loan before taking out a secured business loan.
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