Non-Recourse Loans
A non-recourse loan is a loan that does not require a personal guarantee from the borrower. In this case, Brooktree does not require a personal guarantee because the loans that we make are secured by the asset that we are lending on (in this case real property).
This means that when we determine whether we will provide a loan, rather than considering the borrower’s net worth, salary, or personal assets – we instead perform a valuation of the collateral security, and lend a ratio of the assessed worth of the security.
