Recourse Loan

January 24, 2014  |     |     |   0 Comment

A recourse loan allows the creditor to go after the borrower’s other assets if the borrower defaults on the loan and the value of the collateral is insufficient to cover the remaining debt owed.

For example, in a business loan, the creditor can go after personal assets owned by the borrower such as his house or car even if they were not used as collateral for the business loan.

This differs from a non-recourse loan in which the creditor is limited to seeking financial compensation only from the borrower’s collateral used to obtain the loan.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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