In the simplest terms, collateral is a valuable asset that a borrower pledges to a lender to secure repayment of a loan. If the borrower can’t repay, the lender can seize and sell that asset to ...

Collateral is something that backs — or secures — a loan. It makes the loan less risky, because the borrower has skin in the game. With mortgages, the collateral is usually the home that the borrower ...

Asset-based lending can be a good option for businesses that need access to working capital and have strong assets. Asset-based lending lets you secure funding by using your company’s assets as ...

A secured personal loan may be a good option if you don't have great credit but want a competitive interest rate. These are ...

Secured loans are loans backed with something of value that you own, called collateral. Common examples of collateral include your car, truck, motorcycle or home. Whether you’re still making payments ...

Meredith Mangan is a senior editor and expert on personal loans. Fox Money is a personal finance hub featuring content generated by Credible Operations, Inc. (Credible), which is majority-owned ...

Mark Henricks has written on mortgages, real estate and investing for many leading publications. He works from Austin, Texas, where he engages in songwriting, wilderness backpacking, whitewater ...

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Secured loans are backed by a valuable asset, while an unsecured loan does not require collateral. Each type of loan has its own advantages and risks, so it's important to know how they work before ...