verb
- pledging or using an asset as security for a loan or other obligation
Usage: present participle of collateralize; finance/legal term
Examples
- The company is collateralizing its equipment to secure a line of credit.
- By collateralizing the property, the borrower reduced the interest rate on the loan.
- Banks often require collateralizing assets before approving large loans.
- The investor considered collateralizing her stock portfolio to fund the expansion.
- Collateralizing real estate is a common practice in commercial lending.