# collateral

/kəˈɫætɝəɫ/ (US) · /kəlˈætəɹəl/ (UK)

Source: https://englishreference.com/word/collateral
Updated: 2026-06-20

## Senses

### 1. loan security

noun · CEFR B2

property or money that you promise to give to a bank if you cannot pay back a loan.

For teachers: an asset or property pledged by a borrower as security for a loan, to be forfeited in the event of a default.

- He used his house as collateral so the bank would lend him money for his new business.
- The lender required the borrower to provide high-quality liquid assets as collateral to mitigate the risk of a potential default during the economic downturn.

### 2. marketing materials

noun · CEFR C1 · Academic

the brochures, flyers, and digital content used to help sell a product.

For teachers: the collection of media and printed materials used to support the sales of a product or service.

- The design team is busy creating the sales collateral for the new product launch.
- The marketing department updated all digital collateral to ensure the brand identity remained consistent across the various international territories.

### 3. accompanying or secondary

adjective · CEFR B2

happening at the same time as something else, but not as the main part.

For teachers: descending from the same stock but in a different line; more broadly, accompanying or secondary to the main subject.

- The war caused a lot of collateral damage to the buildings near the airport.
- While the policy achieved its primary goal of reducing inflation, it also had several collateral effects on the local housing market.

### 4. blood vessel branch

noun · CEFR C2 · Technical

a smaller blood vessel that provides another path for blood if the main one is blocked.

For teachers: a subordinate or accessory part, such as a small blood vessel or nerve that provides an alternate route.

- The doctor explained that the patient's body had grown collaterals to help blood reach the heart.
- The surgeon noted that the chronic occlusion had stimulated the growth of extensive collateral circulation, which partially compensated for the restricted blood flow.

## Examples

- He used his house as collateral for the business loan.
- The bank required the small business owner to provide significant collateral before they would approve the expansion credit.
- In high-stakes corporate finance, the quality and liquidity of the collateral often determine the interest rate and the overall risk profile of the lending agreement.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.