ask for collateral

USAGE SUMMARY

The phrase "ask for collateral" is correct and usable in written English.
It can be used in contexts related to finance, lending, or agreements where security is required for a loan or obligation. Example: "Before approving the loan, the bank will ask for collateral to ensure repayment."

✓ Grammatically correct

News & Media

Science

Wiki

Human-verified examples from authoritative sources

Exact Expressions

3 human-written examples

One option would be to keep tenders fixed, but to ask for collateral that covers the entire bid and not just the funds allocated.

The Economist

This is partly because lenders ask for collateral that only the well-off can provide.In addition, banks and other lenders maintain a spread between the rate they pay on deposits and the rate they charge on loans.

The Economist

Capital Float makes loans as small as $400 through its mobile app and, unlike traditional lenders that ask for collateral, it offers unsecured business loans.

TechCrunch

Human-verified similar examples from authoritative sources

Similar Expressions

57 human-written examples

This finding is in line with the findings of Mullei and Bokea (2000) that banks ask for collaterals in order to finance SMEs and to accept loan proposal and that the collateral must therefore be 100%% or more, equal to the amount of credit extension or finance product.

Journal of Innovation and Entrepreneurship

"Goldman was first going in the door asking for collateral.

The New York Times

To minimize his risk, he asks for collateral.

The New Yorker

According to a person briefed on the transactions, Goldman Sachs, one of Dexia's biggest trading partners, has asked for collateral equal to nearly twice the decline in market value of its deals.

The New York Times

They were asking for collateral to give me financing.

Forbes

For richer borrowers, banks solve the risk problem by asking for collateral, but the poor do not have either collateral or the legal documents for the property they may have acquired (Belwal et al. 2012; De Soto 2000).

Journal of Innovation and Entrepreneurship

At any company with a trading business -- Enron was one, but other merchant energy companies include the Williams Companies, Calpine and Dynegy -- the brokerage firms or banks financing their trades may ask for additional collateral if they start to lose confidence in the companies' abilities to raise money in the capital markets.

The New York Times

When banks' counterparties panic, they will quickly stop lending to banks, ask for more collateral, and close out positions, making banks quickly illiquid and increasing banks' borrowing costs, which in turn makes them even less liquid and possibly insolvent.

Forbes

Expert writing Tips

Best practice

When using "ask for collateral", ensure that the context clearly indicates what form of security is being requested. Be specific to avoid ambiguity.

Common error

Avoid using "ask for collateral" when a more specific term is appropriate. Instead of a vague request, specify the type of collateral desired, such as "ask for property as collateral" or "ask for a financial guarantee as collateral".

Linguistic Context

Ask for collateral" functions as a verb phrase, where 'ask' is the verb, 'for' is a preposition, and 'collateral' is the noun. Grammatically, it expresses the act of requesting something as security. Ludwig AI confirms the validity and usability of the phrase.

Expression frequency: Common

Frequent in

News & Media

40%

Science

30%

Wiki

10%

Less common in

Formal & Business

10%

Academia

5%

Encyclopedias

5%

Ludwig's WRAP-UP

"Ask for collateral" is a grammatically correct and commonly used phrase that refers to requesting security for a loan or obligation. As Ludwig AI confirms, the phrase is valid for use in written English. The phrase appears frequently in news media, and is used in scientific and business writing. To ensure clarity, it's best to be specific about the type of collateral you are requesting. Alternatives include "request security" or "demand a guarantee" depending on the specific context. Always ensure the context is clear, and specify the type of collateral where appropriate.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

request security

Replaces 'collateral' with 'security', offering a broader term for guarantees.

demand a guarantee

Emphasizes the insistence on assurance, differing in tone from a simple request.

require assurance

Focuses on the necessity of receiving confirmation or security.

seek a pledge

Implies a more formal or solemn request for security or commitment.

stipulate collateral

Highlights the act of specifying collateral as a condition.

insist on security

Conveys a firm requirement for security or collateral.

call for security

Suggests a formal demand for security or collateral.

look for a guarantee

Replaces 'ask' with 'look', implying a search for security.

secure backing

Focuses on the action of making something safe or certain.

obtain guarantee

Focuses on the action of obtaining a formal assurance.

FAQs

What does it mean to "ask for collateral"?

To "ask for collateral" means to request something of value as security for a loan or obligation. This protects the lender in case the borrower defaults.

What can I say instead of "ask for collateral"?

You can use alternatives like "request security", "demand a guarantee", or "require assurance" depending on the context.

Which is correct, "ask for collateral" or "require collateral"?

Both "ask for collateral" and "require collateral" are correct, but they have slightly different connotations. "Ask for collateral" implies a request, while "require collateral" indicates a mandatory condition.

In what situations would someone "ask for collateral"?

Lenders commonly "ask for collateral" when issuing loans, especially for large sums or to borrowers with limited credit history. Landlords may also "ask for collateral" in the form of a security deposit.