When an entrepreneur takes out a loan from a bank,the bank will require him or her to put up _____,a financial interest in the property or fixtures of the business,to guarantee payment of the loan.

Question

Quizplus · Accepted Answer

Collateral is the correct term for a financial interest in property or fixtures that a bank requires as security for a loan. It guarantees that the bank can recover the loan amount if the borrower fails to repay.

When an Entrepreneur Takes Out a Loan from a Bank,the