Secured Lending & PPSA Services in Canada
Secured lending is a type of borrowing where a borrower pledges assets as collateral to secure a loan. This gives the lender a legal claim to specific assets if the borrower defaults. Most major financial institutions in Canada use secured lending transactions for business financing because they minimize risk and provide clear legal protections.
What Can Be Used as Collateral?
Collateral can be:
- Tangible assets: inventory, equipment, real estate, and securities
- Intangible assets: intellectual property, accounts receivable, and contractual rights
The specific collateral depends on the nature of your business and the negotiated loan terms.
Benefits of Secured Lending for Businesses
Secured loans provide several advantages over unsecured loans:
- Lower interest rates due to reduced risk for lenders
- Higher loan amounts enabling larger capital access
- Longer repayment terms supporting better cash flow management
By using collateral, businesses can secure financing while protecting both parties’ interests.
Legal Documentation & PPSA Registration
Secured lending requires proper legal documentation to ensure enforceability:
- Loan agreements
- Security agreements
- Promissory notes
- PPSA registration in Canada (or UCC filing in the U.S.)
These documents define the rights and obligations of both borrower and lender, and formalize the collateral securing the loan.
Why Kalfa Law Firm?
At Kalfa Law our corporate lawyers guide businesses through every step of secured lending, from drafting agreements to completing PPSA registrations. Whether you’re funding operations, acquiring assets, or raising capital, we ensure your financing is legally sound and risk-managed.
A secured loan is often the most common method of capitalization for business operations and equity contributions.
You might also want to check our Business Financing & Loans service page.
Protect your business and secure your financing.
Contact Kalfa Law Firm today to speak with experienced corporate lawyers about secured lending, PPSA registration, and collateral agreements.
