collateral
Upper-Intermediate (B2)
IPA: /kəˈlætərəl/
KK: /kəˈlætərəl/
adjective
Definition
Related to something that is secondary or additional, often serving as support or assurance for something else.
Example
The bank required collateral assets to secure the loan.
Conversation
Did you hear about the new project at work?
Yeah, I heard it's going to have some collateral benefits for the team.
That's great! I hope it improves our workflow significantly.
Me too! It would be nice to have some collateral support for our efforts.
Synonyms & Antonyms
Synonyms
secondary
ancillary
supporting
Antonyms
primary
main
central
noun
Definition
Something that is used as security for a loan or obligation, often property or assets that can be claimed by the lender if the borrower fails to repay.
Example
The bank required collateral before approving the loan.
Conversation
I heard you needed a loan for your new business venture.
Yeah, but I have to find some collateral to secure it first.
What kind of collateral are you thinking about using?
Root Explanation
Collateral → It is formed from "col-" (meaning together) and "lateralis" (from Latin, meaning side). The word refers to something that is situated at the side or accompanying something else, often used in the context of security or support in finance.
Memory Tip
Think of things that are 'together' ('col-') at the 'side' ('lateralis') — that's why collateral refers to something that supports or accompanies another.
Visually Confused Words
bicollateral
subcollateral
lateral
caudolateral
bicollaterality