verb
- to pledge or use (an asset) as collateral for a loan or debt obligation
Usage: British English spelling (American English: collateralizes); third person singular present tense
Examples
- The company collateralises its equipment to secure a line of credit.
- She collateralises her home to obtain a larger loan.
- Banks often require borrowers to collateralise their loans with valuable assets.
- He collateralises his investment portfolio to fund the business expansion.
- The lender collateralises the debt by taking a security interest in the property.