Collateral

USAGE SUMMARY

The part of the phrase "Collateral" is correct and usable in written English. You can use it in contexts related to finance, security, or risk management. An example is: "The bank required collateral to secure the loan." Alternative expressions include "security," "guarantee," and "pledge."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Any uncertainty and upset caused to pupils or parents involved with existing free schools is merely collateral damage in the great game of coalition, as ministers battle to keep hold of their chauffeur-driven cars and other perks of office.

The Guardian

There is likely to be collateral damage both to Labour and his new party; and – worst of all for a man who believes he can reinvent democracy – he cannot be at all confident that the pieces won't land in much the same pattern as before.

The Guardian - Opinion

But, in view of Greece's economic plight and the uncertain value of the banks' assets, the ECB discounts the value of the collateral they put up by around 40%.

The Guardian

And is Jason Russell scared to come out and admit that effective action entails an old-fashioned boots-on-soil invasion of a landlocked African country, with all the collateral damage that this implies?

The Guardian

The grey heron is the collateral damage here: it joins the avocet, little grebe and ringed plover among the birds that would be endangered by a four-runway behemoth appearing off the Isle of Sheppey.

The Guardian - Business

"Then, either the banks would have to find more collateral or the ECB would lend them less money.

The Guardian

When military leaders are given objectives, they achieve them at whatever collateral cost they are not explicitly prohibited from incurring.

The Guardian - Tech

It is also true, however, that innocent people of color inside those zones can be the collateral damage in the war both sides are fighting.

The Guardian

Even so, Brussels staffers say that the lighter touch of their regulation would avoid the risk of decimating Africa's mineral industry through the collateral damage caused by an investment flight.

The Guardian

Pat Davies, whose home is close to the proposed site at Preston New Road, says: "Lancashire is being used as a test ground and we are the collateral damage.

The Guardian

The Bank refuses to accept as collateral any form of commercial lending when it operates in the money and credit markets.

The Guardian - Opinion

Expert writing Tips

Best practice

When discussing financial agreements, clarify the type and value of the "collateral" to avoid ambiguity and ensure a clear understanding of the terms.

Common error

Avoid using "collateral" when you mean "corollary". "Collateral" refers to security pledged for a loan, while "corollary" means a direct consequence or result. Using them interchangeably can lead to misunderstandings.

Linguistic Context

The primary grammatical function of "collateral" is a noun, referring to an asset pledged as security for a loan. It can also function as an adjective, describing something related to or accompanying the main subject. Ludwig AI examples showcase both usages.

Expression frequency: Very common

Frequent in

News & Media

46%

Formal & Business

24%

Science

30%

Less common in

Encyclopedias

0%

Wiki

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "Collateral" functions as both a noun and an adjective, most commonly referring to assets pledged as security for a loan or describing something related but secondary. As Ludwig AI confirms, it is grammatically sound and frequently appears in news and business contexts. When writing, ensure you distinguish "collateral" from "corollary" to avoid confusion. Consider using alternatives like "security" or "guarantee" for nuanced meaning. Be specific about "collateral" value to ensure clarity.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Security

Emphasizes the aspect of something pledged to ensure repayment.

Guarantee

Focuses on the assurance or promise of fulfilling an obligation.

Pledge

Highlights the act of committing something as a security.

Asset pledged

Specifically refers to the asset being used as security.

Security deposit

Implies a refundable deposit held as protection against potential damage or non-payment.

Surety

A formal term for a person or thing that guarantees an obligation.

Bail

Refers to the temporary release of an accused person on security.

Warranty

A guarantee assuring the quality of a product or service.

Indemnity

Protection against financial loss or damage.

Reassurance

Focuses on the act of restoring confidence or certainty.

FAQs

How is "collateral" used in finance?

"Collateral" in finance refers to an asset that a borrower offers to a lender as security for a loan. If the borrower defaults, the lender can seize the collateral to recover the loss.

What are some common examples of "collateral"?

Common examples of "collateral" include real estate, vehicles, stocks, and bonds. The value and liquidity of these assets determine their suitability as collateral.

What's the difference between "collateral" and "unsecured loan"?

A "collateralized" loan is backed by an asset, reducing the risk for the lender. An "unsecured loan", such as a credit card, is not backed by collateral, making it riskier for the lender and often resulting in higher interest rates.

Can "collateral damage" be avoided in military operations?

"Collateral damage", which refers to unintended harm to civilians or non-military targets, is difficult to completely avoid in military operations. Efforts are made to minimize it, but it remains a significant concern.