May 16, 2025 · What Is Collateral? Collateral is a valuable asset that a borrower pledges as security for a loan, serving thus as a guarantee for the lender.

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 …

1 day ago · Discover how loans with collateral work, including their benefits, risks, and the types of assets you can use to secure financing. Learn how to leverage your assets for better loan …

Collateral is an asset of value that a borrower pledges as security to reduce a lender’s risk when they offer a loan. If the borrower defaults on the loan, the lender is allowed to repossess the …

May 3, 2023 · Collateral is an asset—like a car or a home—that can help borrowers qualify for a loan by lowering the risk to a lender. Secured loans typically require collateral; unsecured …

Jun 10, 2025 · Collateral is a valuable asset (like a car, house or even cash) you can pledge to secure a loan. If you fail to repay your loan, the lender can seize whatever you've put up as …

Collateral is a valuable asset or a group of assets set aside to help secure a loan. If the borrower defaults on payment, the lender can seize the collateral. Mortgages, car finance loans and …

What is Collateral? Collateral is an asset pledged by a borrower, to a lender (or a creditor), as security for a loan.

Mar 3, 2025 · Collateral is an asset—such as real estate, a vehicle, or valuable property —that a borrower offers to secure a loan. It serves as a form of protection for the lender, ensuring that …

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 …