Working-capital loans,unlike most other types of business loans,usually require the customer to keep a compensating deposit balance with the lending bank.

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Working-capital loans are usually secured by the borrower's assets or a deposit held by the lending bank. The deposit acts as collateral and helps reduce the risk for the lender. Therefore, the customer is required to keep a compensating deposit balance with the lending bank.

Working-Capital Loans,unlike Most Other Types of Business Loans,usually Require the Customer