provide collateral

USAGE SUMMARY

"provide collateral" is a correct and usable phrase in written English.
You can use it when someone needs an assurance that they will receive payment in a financial transaction. For example, "In order to take out the loan, I had to provide collateral in the form of my house."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

43 human-written examples

So the ETF provider requires the bank to provide collateral (see diagram).The financial laboratory revisitedHere's the rub.

The Economist

Banks must provide collateral.

The New York Times

The banks provide collateral through a variety of assets, including government bonds.

The Guardian

Muddled property rights make it difficult to buy land or provide collateral for loans.

The Economist

Garment workshops often operate from leased premises and lack fixed assets to provide collateral for loans, she added.

The New York Times

Such valuable houses provide collateral for borrowing, and borrowing, in turn, provides strong support to the economy.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

16 human-written examples

Instead of providing collateral upfront, the company will provide it later, when it is finished being pledged to other debt holders.

The New York Times

And I was fascinated to meet the chief executive of a company, North End Financial, that provides collateral to banks that make loans to small businesses of less than $200,000.

The New York Times

Eligible banks which are euro-zone national central banks and commercial banks that have provided collateral and meet certain balance-sheet criteria then start to bid for the ECB funds via an auction mechanism.

Encyclopedia Britannica

Yet Calpers has invested billions in "economically targeted investments" aimed at providing "collateral benefits to targeted geographic areas, groups of people or sectors while providing pension funds with prudent investments".

Forbes

Generally, there are three essential processes through which borrowers are put into default: continuing their business activities in line with a restructuring, an amicable settlement (redemption), and the liquidation of the loan and the provided collateral.

Business Research

Expert writing Tips

Best practice

When discussing financial agreements, clarify the type of asset used when you "provide collateral" to ensure clarity.

Common error

Avoid overstating the value of the collateral. Ensure that the stated value accurately reflects the market value to avoid complications during liquidation.

Linguistic Context

The phrase "provide collateral" functions as a verb phrase, indicating the act of offering something of value as security for a loan or other financial obligation. Ludwig AI's analysis shows it is used to describe actions taken by borrowers or institutions to secure financial transactions.

Expression frequency: Very common

Frequent in

News & Media

45%

Science

28%

Formal & Business

15%

Less common in

Encyclopedias

3%

Wiki

3%

Reference

0%

Ludwig's WRAP-UP

The phrase "provide collateral" is a common expression in financial contexts, indicating the act of securing a loan or financial agreement with an asset. Ludwig AI confirms its grammatical correctness and frequent use in reputable sources like The New York Times and The Economist. It's crucial to use this phrase accurately, ensuring that the collateral's value is clearly understood and not overstated. Related phrases include "furnish security" and "pledge assets". When writing about financial matters, using "provide collateral" helps convey the formal and transactional nature of the agreement.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

furnish security

Replaces 'collateral' with 'security', maintaining the context of providing assurance for a transaction.

offer guarantee

Focuses on the act of guaranteeing, which is the purpose of providing collateral.

pledge assets

Specifies that assets are being used as collateral.

put up security

Uses 'put up' as a more informal alternative to 'provide'.

give assurance

Highlights the assurance aspect of providing collateral.

secure with assets

Emphasizes securing an obligation using assets.

back with guarantee

Focuses on backing a loan or agreement with a guarantee.

supply guarantee

A more formal synonym, where 'supply' replaces 'provide'.

grant security

Implies a formal granting of security for a financial obligation.

post a bond

This alternative suggests providing a bond as collateral, usually in legal contexts.

FAQs

What does it mean to "provide collateral"?

To "provide collateral" means to offer an asset as security for a loan or other financial agreement, which the lender can seize if the borrower defaults.

What are common examples of assets used to "provide collateral"?

Common examples include real estate, vehicles, stocks, and bonds. The specific assets depend on the agreement between the lender and borrower.

Is it always necessary to "provide collateral" when borrowing money?

No, it's not always necessary. Unsecured loans don't require collateral, but they often come with higher interest rates and stricter requirements. Conversely, "secured loans" require collateral.

What happens if I can't repay a loan for which I "provide collateral"?

If you can't repay the loan, the lender has the right to seize and sell the collateral to recover the outstanding debt. This process is known as foreclosure or repossession.