A secure Line of Credit is guaranteed by a collateral asset of the business, for example through business/company shares or assets. This collateral is monetised in order to facilitate a secure Line of Credit with a bank. Monetisation is the process of converting or establishing an asset into legal tender. If this credit is then unpaid, The lender will take control of the original collateral put forward as security, in this example the company shares or assets, which can then be sold or used to recoup any losses.
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