For many small-business loans requiring collateral, the borrower promises to keep the collateral for the loan duration. If you default, the loan company has the right to sell the collateral. Personal assets can sometimes secure loans for small businesses. There is no requirement for collateral on unsecured business loans such as business credit cards, a business line of credit, and short-term loans. Most traditional lenders require a personal guarantee for most business loans, even if the lender does not demand specific collateral from the borrower.