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collateral

Pronunciation: [kəˈlætərəl]

Word

Learn how to use collateral in a sentence: 9 audio examples across 3 meanings.

Context: “finance”

(noun) something valuable that you give to a lender, like a bank, to secure a loan. If you can't pay back the money, they can take the collateral instead.

Example

She used her car as collateral to get the loan.

Example

He didn't have any collateral to offer, so he couldn't borrow the money.

Example

What kind of collateral can you provide for the loan?

Context: “military”

(noun) damage or injury to something that is not the intended target, often seen in military operations. It's like when a good aim accidentally hurts someone or something else nearby.

Example

The airstrike was precise, with minimal collateral damage.

Example

There was significant collateral damage during the bombing, affecting nearby homes and schools.

Example

How can we reduce collateral damage in military actions?

Context: “finance”

(adjective) related to something that can be used as security for a loan. It describes an item that you can pledge when borrowing money.

Example

He offered several collateral assets, making the loan approval easier.

Example

The bank refused to accept collateral that was not easily valued.

Example

What makes an asset a good collateral item?

How to pronounce collateral

Pronunciation: [kəˈlætərəl]

Listen and repeat as many times as you need.

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