collateral loans
Asset-backed lending arrangements
Collateral loans are loans secured by property or assets that the borrower pledges to the lender.
If the borrower defaults, the lender can seize the collateral to recover the debt.
Common forms of collateral include real estate, vehicles, stocks, or other valuables.
She used her car as security for a collateral loan.
This arrangement typically allows borrowers to obtain lower interest rates than unsecured loans, since the lender assumes less risk.
- real estateLand and its structures
- hard moneyMetallic legal tender
- credit riskPotential for borrower nonpayment
- vehiclesMachines for transportation
- intellectual propertyLegal rights over inventions
jewelry · stocks · margin call · receivables · bonds · foreclosure · pawnbroker · equipment · contract enforcement · repossession · inventory · financial stability · credit line · bankruptcy · debt restructuring · credit union · risk assessment · banking regulations
- loanslend, borrow, borrower, lender, microloan
- asset financeleasing, sale-leaseback, hire purchase, chattel mortgage, residual value
- leverageleverage, financial leverage, gearing, margin, margin trading
- business fundingventure capital, angel investor, debt financing, seed funding, private equity
- farm creditfarm credit, land banks, credit access, credit services, credit risk
collateral loansunsecured loans
Credit without collateral
unsecured credit · personal loans · unsecured debt · credit card debt · payday loans
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