Collateral (definition)
Updated 9 months ago
Collateral
Collateral is an item that a person or company takes out a loan for, which the lender can repossess if the borrower fails to make payments. In an automotive loan, for example, the car is the collateral item. You might also hear people talk about the loan being "collateralized" or "secured" by that item
For info on how collateral works in LMS, see Collateral Overview.