Collateral security

Collateral security,

Definition of Collateral security:

  1. A form of secondary protection sometimes required by a bank and intended to guarantee a borrowers performance on a debt obligation. The primary security on a substantial business loan is typically the thing that is being financed, such as a factory, company car or shipment, but secondary or collateral security might also be requested by a bank to help assure that the loan will be repaid.

Meaning of Collateral security & Collateral security Definition