Collateralize: meaning, definitions and examples

Use this term primarily in financial and legal situations when discussing the act of offering assets as security for a loan. This is more formal and specific than other terms.

• The company decided to collateralize its real estate holdings to secure the new line of credit.
• To reduce borrowing costs, they collateralized their inventory.

This term is best used in common and formal contexts when ensuring the protection, safety, or assurance of something. It can relate to obtaining or guaranteeing resources, deals, or safety.

• The company managed to secure additional funding for the project.
• They want to secure the premises before the VIP arrives.

This word is appropriate in both formal and informal contexts where one wants to assure that something will happen or that there is a promise of compensation if it does not. It can also refer to the person or entity providing the assurance.

• I can guarantee that the product will arrive by Monday.
• The bank offered a guarantee for the small business loan.

Use 'pledge' in situations where someone is committing to donate or support something, often in public or formal settings. It can have emotional or moral weight attached to it.

• She pledged $500 to the charity.
• During the campaign, he pledged to reduce taxes.

Use this in financial and legal contexts when referring to the act of using an asset as security for a loan.

• The company decided to collateralize its property to obtain the loan.
• Banks often require borrowers to collateralize their assets before approving the loan.

Commonly used in both general and professional contexts to mean ensuring something is safely in place or guaranteed. It can be used in everyday situations as well as in legal and financial scenarios.

• The company managed to secure additional funding from investors.
• Please secure the doors before leaving the house.

Primarily used in everyday language and in business contexts to describe providing support or guarantee for a person, plan, or financial arrangement.

• He agreed to back his friend's startup with a substantial investment.
• The project succeeded because it was backed by a strong team of professionals.

Often used in everyday language to indicate helping or standing by someone or something, whether emotionally, financially, or through other means.

• The community came together to support the local charity event.
• She supports her family by working two jobs.