Question

explain the following terms 1)collateral 2)differed payments

Answer 1

A loan arrangement in which the borrower is allowed to start making payments at some specified time in the future. Deferred paymentarrangements are often used in retail settings where a person buys and receives an item with a commitment to begin making payments at a future date..................... Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses. ... A lender's claim to a borrower's collateral is called a lien