Whenever you apply for a loan, whether you are running a small or big organization, the bank or any other lending institution wants to be ensured about your capability to pay the loan. For this purpose, you are asked about your income sources and credit history so that the lender could be able to establish your credibility before granting the loan. However, if the amount of your loan is large or the lender does not find your credibility suitable for the said loan, you may be requested for the collateral or a guarantee. Now you must be thinking about how you get a loan against a bank guarantee or how it differs from collateral. Read more: https://www.emeriobanque.com/blogs/difference-between-bank-guarantee-and-collateral