Many people use personal assets as collateral for small business loans.
We take our home as collateral in order to raise money to invest in the scheme.
A:Can I borrow five bucks?
A:Come on! I'll pay you back on Tuesday.
B:Last time I lent you money, you never paid me back.
A:I promise if you lend me five dollars today, I will repay you in full next week.
B:Ok, but I'm taking your skateboard as collateral.
A:Fine! I can't believe you don't trust me.
B:It's nothing personal, just business.