collateral definition

collateral definition

Glossary: collateral

Collateral is an asset that is promised or given to a creditor (a factor or a financial institution) to guarantee the discharge of an obligation by the debtor. Upon default, the creditor may seize the asset and sell it to pay off the loan.

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Business Consulting

Definition: collateral

Factoring provides cash to your business with no time delay from issuing invoices as well as sales ledger and collection services.

Accounts Receivables Financing (Factoring): The invoices you issue upon a sale are sent to the factor who typically advances up to 80 to 90% of the invoice amount to you.

Factoring Glossary - Define: collateral - 2004 HJ Ventures International, Inc.