Collateral (Noun)
Meaning
A security pledged for the repayment of a loan.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The bank required the small business owner to put up her house as collateral for the loan.
- The company's assets were used as collateral to secure a large loan from the investors.
- He had to use his car as collateral to get a short-term loan from the payday lender.
- The lender demanded that the borrower provide collateral in the form of a second mortgage on their property.
- The entrepreneur had to put up her life savings as collateral to secure funding for her startup.