Do you a gree or disagree eith the statement that its necessary to have collateral in place before the provision of finance to the client?

Do you a gree or disagree eith the statement that its necessary to have collateral in place before the provision of finance to the client?
Yes i agree,colateral is a security for the loan and therefore gives the confidence of low default risk in the borrower. That way the borrower may also be given a fair rate of borrowing as well as a good line of credit.