The collateral refers to a asset that a lender accept security ? for loan . It acts as a form of protection for the lender . That is the borrower default on their loan payments the leander can seize the collateral and sell to recoup some or all of its losses . Types of collateral are 1.Real estate 2.cash secured 3. Inventory financing 4. Invoice collateral 5.blanket liens 6.unsecured loans 7.online loans 8.using a co maker and co signer

 

Collateral (Security) is an asset that the borrower owns (such as land, building, vehicle, livestocks, deposits with banks) and uses this as a guarantee to a lender until the loan is repaid. If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.

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