Glossary · Doing the deal
Collection remedy
In short
This is the legal action a lender can take to recover money if a borrower defaults on a loan. It's how the bank gets its money back when things go wrong.
What it means in a deal
Lenders include collection remedies in loan agreements to protect their investment. As a buyer, understand these terms in your loan documents; they outline what happens if you can't pay. This includes seizing collateral or pursuing personal guarantees.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Collection remedy
- What if my personal credit report shows a minor collection from several years ago?
- What minimum collection efforts must a lender demonstrate before submitting a 7(a) liquidation plan?
- Can I use personal assets like a valuable coin collection or art as part of my equity injection?
- What minimum efforts must a lender demonstrate in collection and recovery before submitting a liquidation plan to the SBA?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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