Imagine this scenario. As a small business owner trying to keep your company above water, or even just trying to start a new one, you go into your local bank looking for a line of credit or a small business loan. The loan officer reviews your business assets, credit score, and credit history. He tells you that you need to pledge your real estate holdings and half of your inventory. Reluctantly you decide to go forward because you think there is no other way to get the loan with out putting up collateral. Unfortunately your business hits a snag and within a few months you are no longer able to make the payments. Now you are unable to make the payments and the bank has a lien on your assets. What happens? Your business is no longer able to survive.