1. to pledge or use (an asset) as collateral to secure a loan or other obligation
Usage: finance/banking term; third-person singular present tense or plural form of collateralize

Examples

• The company collateralizes its equipment to obtain a line of credit.
• She collateralizes her home to secure a business loan.
• Banks often require borrowers to collateralize their loans with valuable assets.
• He collateralizes his investment portfolio to fund the expansion.
• The lender collateralizes the debt with the borrower's real estate holdings.
• When you collateralize a loan, you reduce the lender's risk.