When a business borrows money, it funds growth and production. If they fail, they lose their collateral.
When a government borrows money, it does not produce goods and services people want. It transfers wealth to present beneficiaries from victims of future taxes and inflation.
Right now, the big question is, what collateral should we ask government to provide on their loans? And we also need accountability in terms of production.
Governments have no collateral because everything they have is stolen. They are territorial monopolies in violence, not a form of collective action based on consent, not even when cloaked in "democracy."