Definition

To use something valuable as security for a loan or obligation, ensuring that the lender can claim it if the borrower fails to repay.

Example

The bank agreed to collateralize the loan with the company's assets.

Tense Forms

Conversation

I need to figure out how to collateralize my car for that loan.

That sounds like a good plan! Just make sure you understand the terms.

Yeah, I want to ensure I don’t lose my car if I can’t pay it back.

Exactly, it's important to read everything carefully before you sign.

Synonyms & Antonyms

Root Explanation

Collateralize → It is formed from "collateral" (from Latin "collateralis", meaning accompanying or additional) and "-ize" (a suffix used to form verbs meaning to make or to become). The word "collateralize" means to make something into collateral, or to provide additional security for a loan or obligation.

Memory Tip

Think of 'collateral' as something that accompanies or adds security, and '-ize' means to make. So, when you collateralize, you are making something into a form of security.

Visually Confused Words