Proverbs 27: King James Bible
Taking Collateral – Daily Devotion of Proverbs chapter twenty seven, Verse
13 Take his garment that is surety for a stranger, and take a pledge of him for a strange woman.
Daily Inspiration from This Verse – Taking Collateral
The verse above is verbatim to Proverbs 20:16, that I grouped with four other verses in a devotional called “Bread of Deceit.” In that post, we didn’t go through verse 16 specifically, but included it due to the financial flavor of that particular chunk of scripture. Good to see the same verse come round again, because we’ll deal with it here!
We’ve spoken of “Surety” in the past in a post that bears it’s name. If you’re unclear of what the scripture means concerning this word, check out that post, as it will give you a good idea of what the Lord is making reference to in the verse above.
Proverbs 11:15 tells us that those who are surety for a stranger will smart for it. That verse is a warning against falling into the position of being surety for a stranger. However, the verse above is warning us from being on the other side of that spectrum.
We’re not being warned about becoming surety for a stranger, but warned against dealing with those who are risky enough to take on that role. The Lord’s advise concerning this, is to take something from them first.
These days, we’d call that taking collateral. Would you be willing to cosign a loan for someone that you don’t know? That would be a risky maneuver that borderlines foolishness. You’d have zero idea whether or not that person could ever pay you back, nor would you know if they’d be willing to do so even if they could.
It’s one thing doing it for someone you know, because at least you’d have a general idea of what you’ll be dealing with in the future. But for a stranger?
Now place yourself in the position of being the one who would be doling out that loan. Would you feel comfortable about giving someone a loan that hasn’t got a clue whether or not they’ll be placed in a position to have to pay it off?
Most people that become surety for anyone, generally don’t expect to have to be the ones paying. In typical circumstances, they do it to help out someone such as family or close friends that can’t get a loan for whatever reason, but have the capacity to pay one off. But again, for a stranger?
Collateral is something that at least guarantees the lender that it won’t be a one way transaction if things go afoul when doing business with the type of person who’d take such risks. Depending on the amount asked for, it may at least be enough to cover the legal fees to get the ball rolling in court, in order to extract what’s owed.
Though many of us may not find ourselves in need of the advice above, not having been placed in a position of dealing with or handing out loans, we can still apply this to our knowledge base of how to deal with different types of people. Those who are willing to take such high risks tend to suffer the consequences of doing so. When the consequences come calling, there’s usually a ripple effect that resonates to all associated to them.
Related New Testament Scripture
Romans 12: King James Bible
10 Be kindly affectioned one to another with brotherly love; in honor preferring one another; 11 Not slothful in business; fervent in spirit; serving the Lord; 12 Rejoicing in hope; patient in tribulation; continuing instant in prayer; 13 Distributing to the necessity of saints; given to hospitality.
Luke 7: King James Bible
41 There was a certain creditor which had two debtors: the one owed five hundred pence, and the other fifty. 42 And when they had nothing to pay, he frankly forgave them both. Tell me therefore, which of them will love him most? 43 Simon answered and said, I suppose that he, to whom he forgave most. And he said unto him, Thou hast rightly judged.
As always, thank you for your Word, and for the sound advice that you have given us through it. Help us to avoid financial risks, and to be wise stewards in all things, not just with money and finance, but also with the things that pertain to you and our walk with you. Help us to be wise in our daily transactions, and to conduct business in the manner and by the principals that you have established. In the name of the Lord Jesus Christ we pray.
Are you in a position where taking collateral is a part of the job?