2021年6月8日 · Learn about collateral, a key concept in finance and law. Understand how collateral is used in financial markets, legal proceedings, and personal finance.

Collateral, especially within banking, traditionally refers to secured lending (also known as asset-based lending). More-complex collateralization arrangements may be used to secure trade transactions (also known as capital market collateralization).

2024年9月17日 · Collateralization provides a lender with security against default on a loan. Because it greatly reduces the lender's risk, the interest rates on collateralized loans are substantially lower....

2024年10月4日 · 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...

2019年10月1日 · 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.

2025年3月5日 · collateral, a borrower’s pledge to a lender of something specific that is used to secure the repayment of a loan (see credit). The collateral is pledged when the loan contract is signed and serves as protection for the lender.

What is Collateral? Collateral is an asset pledged by a borrower, to a lender (or a creditor), as security for a loan. Borrowers generally seek credit in order to purchase things – it could be a house or a car for an individual, or it could be manufacturing equipment, commercial real estate, or even something intangible (like intellectual ...

2016年11月2日 · Put simply, collateral is an item of value that a lender can seize from a borrower if he or she fails to repay a loan according to the agreed terms. One common example is when you take out a mortgage. Normally, the bank will ask you to provide your home as collateral.

2024年10月1日 · Collateral is an item of value borrowers can pledge to lenders to obtain a loan or a line of credit, formally written in the agreement.