How would someone go about using contract(s) as collateral if the borrower is needing funds to purchase the mentioned contract(s)? A little more explanation, someone is selling this contract(s) and it would expand someones business operations that competes in the same industry? Its really an acquisition loan but it's to obtain a contract with a third party. Anyone have any past experience with something like this?

thanks,

Sounds like receivable financing and security would be accomplished through UCC-1s. But you really need to sit down with legal counsel.