What is typically pledged as collateral for a secured short-term loan?

1. Secured loans require the borrower to pledge specific assets as collateral, and the lender can legally take them if the loan is not repaid. 2. The collateral is typically accounts receivable or inventory. 3. Accounts receivable are normally quite liquid, which makes them an attractive form of collateral. 4. Inventory appeals only insofar as it can be sold easily at a fair price, so raw materials and finished goods differ in how welcome they are. 5. Commercial banks and commercial finance companies are the main sources of these loans. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.3 Obtaining Short-Term Financing_