Can you use a business as collateral when getting a loan to buy that business?

• financial service business
• small business financial services
• getting a small business loan
• house alarms

If someone is buying a home, they put down a down payment and pay the rest off in payments. The house being purchased is the collateral used to secure that loan


If someone were to buy a business, could they put down a down payment and pay the rest off in payments using the business being purchased as the collateral used to secure that loan?


Assume the business presents financial records showing that it is successful

Can you use a business as collateral when getting a loan to buy that business?