"Personal collateral" refers to a person using their personal assets or belongings as security for a loan or debt. It means that if the person fails to repay the loan, the lender can take possession of their personal belongings as compensation.
Sentences with «personal collateral»
Whereas banks can require personal collateral, such as your home, Lending Club requires only a UCC - 1 lien; this allows the company to seize certain business assets if you default. (nerdwallet.com)
Unlike other business loans that a require 20 — 30 percent down payments and must be secured by personal collateral, Working Capital loans only need 10 percent down and are secured by your business assets. (guidantfinancial.com)
Taking out personal no guarantee loan allows business owners decline the risks because these lending products don't require any form of personal collateral. (personalmoneyservice.com)