verb
- to pledge or use (an asset) as collateral for a loan or other obligation
- to provide or secure with collateral
Usage: chiefly British spelling; American English typically uses 'collateralize'; finance/banking term
Usage: finance/banking term
Examples
- The company decided to collateralise its equipment to obtain a business loan.
- Banks often require borrowers to collateralise their mortgages with property.
- She collateralised her car to secure a personal loan.
- The firm collateralised its inventory to finance expansion.
- Investors may collateralise securities to access credit facilities.