what collateral? give examples.
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The guarantee of the debtor given to the creditorgiven while taking loan is known as collateral
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Collateral can be understood in a simple way - it is a kind of security in the form of any movable or immovable property or it may be any document against which credit or loan is sanctioned. If the borrower fails to repay loan the collateral can be used to recover the loan.
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You might also pledge your business receivables as well. If you do in fact default on the loan, the loan agreement gives the lender the right to seize and then sell the collateral in order to recover any outstanding balance.
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