Meaning & use
collateral
Property or an asset pledged as security for a loan, to be forfeited if the debt is not repaid.
See it in a sentence
The bank required his car as collateral before approving the loan.
She used her house as collateral to secure funding for the business.
A note on using this word
A finance and banking term; do not confuse with the adjective sense meaning "incidental," as in "collateral damage."
Words with a similar meaning
Choose a synonym to suit the sentence. Meanings can overlap without being identical.
Another way to use it
2. adjective
Happening alongside or as an indirect result of the main event, especially unintended damage.
The bombing caused significant collateral damage to nearby homes.
Make it your own
Write a sentence using “collateral”, then compare your use with the examples above.
Your draft stays on this page and is not sent anywhere.