Assume the proceeds from the loan with the compensating balance requirement?

That would be up to the lender. Of course, the executor of the estate would have to give that heir the equity in the auto.

In most cases you are still liable for the remainder. Check with the lender to see if they will waive the balance left over. If not you are probably going to have to come up with it.

"There are several different requirements when getting a loan, and those requirements can change based on the type of loan that you are looking for, and the amount you need. Credit score and history,...

The balance means the amount of money that you still owe on the loan.

One requirement of obtaining a small business loan is that you have a prepared business plan. A plan entails detailed projections of earnings and expenses for the next five years.