Kollaterala
Kollaterala is the asset that a borrower pledges to a lender to secure the repayment of a loan or performance of an obligation. If the borrower fails to meet the terms, the lender may seize or dispose of the collateral to recover the debt. The use of collateral lowers the lender's risk and can influence the terms offered to the borrower, such as a lower interest rate or a higher loan amount relative to the value of the asset.
Collateral can take many forms. Tangible assets such as real estate, vehicles, equipment, and inventory are
To create collateral rights, parties typically sign a security agreement that describes the collateral and the
Valuation is a key part of collateral arrangements. Lenders assess current value, liquidity, and potential depreciation.
If the borrower defaults, the lender may enforce the security by taking possession, selling, or otherwise realizing