One advantage of installment loans for a small business is that the business owner retains a security interest in the item sold as collateral on the loan.

Question

Quizplus · Accepted Answer

With installment loans, the borrower (small business owner) uses an asset as collateral for the loan, allowing the business owner to retain a security interest in the item sold as collateral. This means that if the borrower defaults on the loan, the lender can seize the collateral to recover some or all of the loan amount.

One Advantage of Installment Loans for a Small Business Is