– (assets to secure the debt) is a credit quality for a loan officer to take into consideration. A rate of depreciation on a product or service has to be considered in determining a payment schedule in order for the loan to pay-back properly to the lender. A good lender does not underwrite a loan based solely on collateral, but lack of collateral could be a real problem. Your personal guaranty is usually required. A Fortune 100 company does not usually need collateral, or personal guaranty’s, but yes size matters. Small businesses take it on the chin, but you have to start somewhere.