collateral
/kəˈɫætɝəɫ/
Assets pledged as security for a loan
collateral in a sentence
“The property serves as collateral for the mortgage.”
Origin of collateral
From Medieval Latin collateralis (accompanying, side by side), from Latin col- (together) + lateralis (of the side)
Related Words
capital expenditure
Funds used to acquire or upgrade physical assets
overhead
Ongoing business expenses not directly tied to production
revenue
Income generated from normal business operations
margin
The difference between cost and selling price
valuation
The process of determining a company's worth
audit
An official inspection of an individual's or organization's accounts