Factoring Company- Glossary > Factoring Terms > Collateral

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Something of value (land, a home, a car, etc.) that is pledged as security to ensure the payment of a debt. Collateral is promised to a lender until a loan is repaid. If the borrower defaults, the lender has the right, by law, to seize the collateral.

Last updated on September 26, 2009 by FACTOR KING, LLC