Collateralize Definition & Meaning - Merriam-Webster
Web1. : to make (a loan) secure with collateral. 2. : to use (something, such as securities) for collateral. Examples of collateralize in a Sentence. Recent Examples on the Web Hindenburg also detailed the investor’s margin loan collateralized by his stake in the company, which was not previously accounted for by the Bloomberg Billionaires Index.
Collateralization: Definition, How It Works, Examples - Investopedia
WebAug 25, 2023 · Collateralization is the use of a valuable asset as collateral to secure a loan. If the borrower defaults on the loan, the lender may seize and sell the asset to offset their loss. For lenders,...
COLLATERALIZE | English meaning - Cambridge Dictionary
Webverb [ T, usually passive ] UK (also collateralise) uk / kəˈlæt ə r ə laɪz / us. Add to word list. FINANCE. to give property as collateral for a loan, bond, etc.: Loans below $25,000 do …
Collateral - Definition and Examples - Investopedia
WebFeb 23, 2024 · Key Takeaways. 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...
COLLATERALIZE definition | Cambridge English Dictionary
WebFINANCE. to give property as collateral for a loan, bond, etc.: Loans below $25,000 do not need to be collateralized. (Definition of collateralize from the Cambridge Business …
What is a collateral loan? Pros, cons and how it works - USA TODAY
WebJan 11, 2024 · A collateral loan (also known as a secured loan) lets you borrow money using an asset to secure the loan. With collateral backing the loan, lenders reduce their risk and can offer more...
COLLATERALIZE Definition & Meaning | Dictionary.com
Webverb (used with object) , col·lat·er·al·ized, col·lat·er·al·iz·ing. to secure (a loan) with collateral. to pledge (property, securities, etc.) as collateral.
Collateralization | Financing Definition + Loan Examples - Wall …
WebApr 26, 2024 · Collateralization refers to a financing arrangement wherein a borrower can secure a loan by offering collateral to de-risk the lending agreement. Otherwise, the borrower would have been unlikely to obtain the loan or would have received more unfavorable terms.
Collateralization: Meaning, How It Works, & Examples
WebJul 26, 2023 · Collateralization is a financial practice where assets or property are pledged as security to obtain a loan or mitigate credit risk in transactions. Borrowers provide collateral to assure lenders that the debt will be repaid. Common types of collateral include real estate, vehicles, securities, and valuable assets.
What Is Collateral? – Forbes Advisor
WebMar 26, 2021 · Collateral is a thing of value that a borrower can pledge to a lender to get a loan or line of credit; common examples of collateral include real estate, vehicles, cash and investments.
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