The following was posted by Dawn on May 13, 2006:

"Can someone explain to me a few things.
1. What is insurance for a business loan when you
have no collateral?
2. How do you get loan insurance and how does it
work?
3. What is the cost for this type of insurance.

Any insight would be appreciated. I just want to know if this is a good thing and something that is okay to do or if this is something I should be wary of.

Thank you!"
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This message was posted before we switched to the new Cyberschmooz format. You can read any responses to the original post at https://www.businessownersideacafe.com/cgi-bin/maincs/dcboard.cgi?forum=FinancialFeasts&az=list&database=archive.

Loan or credit insurance is an instrument for lenders and compnies with significant accounts receivable use to minimize their risk. I don't know what your premium will be, but we pay about 0.28% of our portfolio, and the rate is adjusted every quarter. Is someone having you buy the insurance to qualify for a loan?