Collateral

Lending

Collateral is an asset that a borrower provides to a lender as a guarantee to repay a loan. If the borrower fails to repay, the lender can take the collateral to recover their money.

Definition: Collateral is an asset that a borrower provides to a lender as a guarantee to repay a loan. If the borrower fails to repay, the lender can take the collateral to recover their money.