mdi-chevron-left Go Back


Assets pledged to secure a loan or credit.

Business Glossary provided by
Collateral is an asset or property that a borrower offers to a lender as security for a loan. If the borrower defaults on their loan payments, the lender can seize the collateral and sell it to recover some or all of their losses. The type of collateral required can vary based on the loan type and the borrower's creditworthiness. Common examples include real estate, vehicles, and investments.
View Glossary Writing a Business Plan?

Starting or Running a Business?

Generate a business plan in minutes.

Get Started
Business Owner