Examples of “collateral” in a Sentence

noun An asset pledged as security for a loan, which the lender can claim if the borrower fails to repay.

• He put up his car as collateral for the loan.
• The bank required collateral before approving the mortgage.
• Small businesses often struggle to offer enough collateral when they ask for a loan.

adj Secondary or incidental, alongside the main effect or target.

• The report focused on collateral damage from the policy change.
• The new road had collateral benefits, such as quieter streets near the school.
• Closing the shop caused collateral problems for the businesses next door.