Debt financing requires collateral that pledges business assets or personal assets, such as a home, to secure the loan in case of default.

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Kirby VanHaren · Accepted Answer

Final Answer : True, Explanation :  This statement is true. When a business or individual obtains debt financing, they must provide collateral to secure the loan in case they are unable to repay it. Collateral is usually in the form of business assets such as equipment, inventory or accounts receivable, or personal assets such as a home or car.

Debt financing requires collateral that pledges business assets or personal assets, such as a home, to secure the loan in case of default.

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