Collateralize: meaning, definitions and examples
🔒
collateralize
[ kəˈlætərəˌlaɪz ]
finance
To pledge an asset as security for a loan, typically in the context of financial transactions.
Synonyms
Examples of usage
- The company decided to collateralize their real estate holdings in order to secure a loan for expansion.
- Before granting the loan, the bank required the borrower to collateralize his investment portfolio.
- The lender may ask the borrower to collateralize the loan with a valuable asset, such as a car or a house.
general
To provide something of value as a guarantee for the performance of a certain obligation or agreement.
Synonyms
Examples of usage
- The contractor had to collateralize a portion of the project's budget to ensure timely completion.
- In negotiations, both parties may agree to collateralize certain terms to demonstrate commitment.
- Collateralizing the deal with a substantial deposit helped build trust between the two parties.
Translations
Translations of the word "collateralize" in other languages:
🇵🇹 dar como garantia
🇮🇳 प्रतिभूति के रूप में देना
🇩🇪 besichern
🇮🇩 dijadikan jaminan
🇺🇦 заставляти
🇵🇱 zabezpieczać
🇯🇵 担保にする
🇫🇷 mettre en garantie
🇪🇸 dar en garantía
🇹🇷 teminat olarak vermek
🇰🇷 담보로 제공하다
🇸🇦 تقديم كضمان
🇨🇿 dát do zástavy
🇸🇰 zabezpečiť
🇨🇳 抵押
🇸🇮 zavarovati
🇮🇸 veðsetja
🇰🇿 кепілдікке қою
🇬🇪 თავისუფლება
🇦🇿 girov qoymaq
🇲🇽 dar en garantía
Word origin
The term 'collateralize' originated from the word 'collateral', which comes from the Latin word 'collaterālis', meaning 'parallel' or 'side by side'. The concept of using collateral to secure loans has been a common practice in finance for centuries, providing lenders with a form of security in case the borrower defaults. Collateralizing assets has become a standard procedure in various financial transactions to mitigate risks and ensure the repayment of debts.