Collateral refers to assets pledged by a borrower to secure a loan, providing lenders with a form of protection against default.

In modern lending, the scope of acceptable collateral has expanded significantly beyond traditional assets like real estate and vehicles. Today, lenders are increasingly exploring diverse and unconventional forms of collateral, including intellectual property, receivables, inventory, equipment, cryptocurrency, and even future cash flows. This shift reflects the evolving nature of global economies and the need for more flexible financing solutions. By leveraging a broader range of collateral types, lenders can mitigate risk while enabling borrowers to access capital based on the value of their unique assets.

This trend underscores the importance of innovative valuation methods and risk assessment frameworks to accommodate the growing diversity of collateral in contemporary financial markets.

In Canopy, we support the following types of collateral to secure a line or loan

Collateral Type

Value	Description
REAL_ESTATE	Property such as land, residential, or commercial buildings, often valued based on market conditions and location.
VEHICLE	Cars, trucks, or other machinery, typically appraised based on make, model, age, and condition.
EQUIPMENT	Machinery, tools, or technology used in business operations, valued by functionality and market demand.
ACCOUNTS_RECEIVABLE	Outstanding invoices or money owed to a business, assessed based on collectability and aging.
INVENTORY	Goods or materials held by a business, valued at cost or market price, depending on liquidity and turnover.
BUSINESS_ASSETS	Tangible or intangible assets like patents, trademarks, or physical property owned by a business.
SECURITIES	Stocks, bonds, or other financial instruments, valued based on market prices and liquidity.
CASH	Liquid funds held in bank accounts or equivalents, often considered the most secure form of collateral.
CRYPTOCURRENCY	Digital assets like Bitcoin or Ethereum, valued based on market volatility and exchange rates.
COLLECTIBLES	Rare items such as art, antiques, or memorabilia, appraised for their uniqueness and market demand.