Collateral
An asset offered as security for a debt. If the borrower defaults, the lender may have rights to enforce against that asset.
Related terms
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Secured lending
Lending supported by security over assets, giving the lender additional recovery rights if the borrower defaults.
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Secured loan
A loan backed by a specific asset or assets that the lender may be able to enforce against if repayments are not made.
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Secured creditor
A creditor with enforceable security over an asset, giving it rights against that asset if the debt is not paid.
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