Collateral refers to something that is given or pledged as security for a loan, typically property or assets. It can also mean additional information or material that supports and enhances the main point or idea being presented.
Usage examples
The bank required him to provide collateral, such as his house or car, in order to secure a loan.
The company used its valuable patents as collateral to secure funding for a new project.
The borrower was unable to repay the loan, so the lender seized the collateral, which was a piece of land.
The investor wanted to minimize risks, so they asked for collateral in the form of stocks and bonds.
The business owner had to pledge their personal savings as collateral for the business loan.
The bank accepted the artwork as collateral for the mortgage loan.
The borrower defaulted on the loan, resulting in the bank auctioning off the collateral, which was a commercial property.
The lender demanded additional collateral, such as inventory and equipment, to ensure the borrower's ability to repay.
The pawnshop accepted the customer's watch as collateral for a short-term loan.
The government required collateral in the form of treasury bills to guarantee a contractor's performance on a major infrastructure project.
Lenders are hesitant to lend on foreign trade assets, and most lenders would either consider those accounts ineligible or will discourage their use as collateral as a matter of policy. (loanuniverse.com)
That means that they are taken out through the use of collateral as insurance. (badcreditloanservices.com)
The margin is placed on a margin funding account as collateral for the trade. (fxempire.com)