What are some types of current assets that are pledged as security for short-term loans?

Explanation

Stocks and bonds, equipment, inventory, accounts receivable, buildings, and land are often used as collateral.  However, few companies that need loans have excess stocks/bonds. Fixed assets such as land, buildings, and equipment are often used as collateral but only for long-term loans due to illiquidity.

Verified Answer

The two types of current assets frequently used for collateral in secured loans is accounts receivable and inventory.