What collateral do banks require for corporate financing, and what if I own no property to mortgage? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

What collateral do banks require for corporate financing, and what if I own no property to mortgage?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

The bank asks for collateral such as: a commercial mortgage over the company's assets, bank cheques, or assignment of contract receivables.

If the company does not have sufficient collateral, the bank steps in together with the Credit Guarantee Company (CGC), which is affiliated to the Central Bank and guarantees the bank up to 80% of the financing amount to encourage the bank to approve.

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