Collateral and security in the Caribbean
What providers accept as security, how it is valued, and the alternatives when you have little to pledge.
Common forms of security
Mortgages over commercial or residential property, debentures over company assets, chattel mortgages on equipment and vehicles, assignment of receivables or contract proceeds, cash deposits, and personal or corporate guarantees.
How it is valued
Providers apply a discount to market value — the forced-sale value — because they must assume a quick disposal. Property is often taken at seventy to eighty percent of valuation, specialised equipment far lower.
Valuations are usually accepted for a limited period, commonly twelve to twenty-four months, after which a refresh is required.
When security is thin
Look at partial-guarantee schemes offered by regional development institutions, invoice-based facilities where the receivable is the security, equipment finance where the asset secures itself, or blended structures where a development partner takes first loss.
Related guides
Debt facility types: which structure to ask for
Term loans, working capital lines, invoice discounting, trade finance, asset finance and overdrafts, and how each one is repaid.
Types of capital explained
Debt, equity, project finance, hybrid instruments and grants — what each one costs you, who provides it in the Caribbean, and when it fits.