Secured Lines of Credit
In such a situation, the asset acts as collateral. Note that this can be liquidated or seized by the lender if the borrower happens to default. One of the classic examples of this is a home mortgage. In this, the bank allows you to avail a large amount of money against the security provided by the property.
As far as an equipment secured lender is concerned, secured lines of credit are a great option as they allow recovering advanced revenue funds if the borrower happens to fail in completing the payment. For business owners and individuals too, the secured lines of credit are attractive as they come with a higher maximum credit limit, and at a much lower interest rate than unsecured lines of credit.
One of the most popular forms of such lines of credit is a residential real estate secure funding loan or Home Equity Line of Credit (HELOC). In HELOC, money is borrowed against the value of the equity of the home, or against a second mortgage.