noun something pledged as security for repayment of a loan, to be forfeited in the event of a default
adjective additional but subordinate; secondary
Collateral is commonly used in real estate transactions, where the property being purchased serves as collateral for the mortgage loan.
Collateral is an asset that a borrower offers as security for a loan. If the borrower fails to repay the loan, the lender can seize the collateral to recoup their losses.
Collateral can be used in legal contexts, such as collateral for bail or collateral in a contract to secure performance.
Collateral is often required for certain types of loans, such as mortgages or car loans, to reduce the lender's risk.
Collateral can be used in investment contexts, such as margin trading where securities act as collateral for borrowed funds.
In the context of a writer, 'collateral' can refer to additional materials created to support a main piece of content, such as blog posts, social media updates, or promotional materials.
For a psychologist, 'collateral' may refer to supplementary information or resources provided to clients, such as handouts, worksheets, or educational materials.
In the field of finance, 'collateral' is often used to describe assets pledged as security for a loan or other financial transaction, such as real estate, stocks, or bonds.
In marketing, 'collateral' typically refers to the collection of media and promotional materials used to support the sales of a product or service, including brochures, flyers, and advertisements.
For a graphic designer, 'collateral' can encompass all the visual elements created to support a brand or marketing campaign, such as logos, color schemes, and typography guidelines.