Assets that a borrower uses to secure a loan or other credit are referred to as

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Collateral is the term used to refer to assets that a borrower pledges as security for a loan or credit. This gives the lender the right to seize and sell the asset in the event that the borrower defaults on their payments. Financed assets refer to assets that are purchased using borrowed funds, tangible assets refer to physical assets such as property or equipment, fixed assets refer to long-term assets that are not intended for sale, and assignments refer to transfer of ownership or rights of an asset.

Assets That a Borrower Uses to Secure a Loan or Other