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As a noun, collateral means something provided to a lender as a guarantee of repayment. So if you take out a loan or mortgage to buy a car or house, the loan agreement usually states that the car or house is collateral that goes to the lender if the sum isn't paid.
COLLATERAL definition: 1. valuable property owned by someone who wants to borrow money, that they agree will become the…. Learn more.
Collateral definition: property or other assets pledged by a borrower as security for the repayment of a loan. See examples of COLLATERAL used in a sentence.
Collateral is an item of value pledged to secure a loan. Collateral reduces the risk for lenders. If a borrower defaults on the loan, the lender can seize the collateral and sell...
COLLATERAL meaning: 1. valuable property owned by someone who wants to borrow money, that they agree will become the…. Learn more.
Collateral is money or property that is used as a guarantee that someone will repay a loan. Many people use personal assets as collateral for small business loans. There is collateral available to be sold if the loans default.
It's what you promise to give someone if you don't repay a loan, like the car you put up as collateral when you take a loan out from the bank. As an adjective, collateral can refer to something indirect or off to the side, like collateral damage.
What is Collateral? Collateral is an asset pledged by a borrower to a lender, usually in return for a loan. The lender has the right to seize the collateral if the borrower defaults on the obligation.
Collateral is property or other assets pledged to a lender to help secure a loan. If someone borrows money, they can agree that their lender can take something from them if they fail to repay the debt. This is known as a secured loan.
Accompanying or existing in a subordinate, corroborative, or indirect relationship. Webster's New World. Similar definitions. Serving to support or corroborate. Collateral evidence. American Heritage. Of a secondary nature; subordinate. Collateral target damage from a bombing run. American Heritage. More Adjective Definitions (7) Synonyms: