Business terms and jargon explained. Your business dictionary
What is Collateral
Where an asset or assets e.g. house, car is pledged as a guarantee to a lender for a loan. If repayments are not made or defaulted then the lender has the right to sell the collateral to recover the loan amount and charges.
Knowledge is the key to success. That is why we have gone to great lengths to get you these business terms, and to explain them in Plain English so it is very easy to understand. Getting the right understanding and knowing your business jargon will keep you informed among your peers.