Business GCSE

Collateral

What Collateral means in Business GCSE, as defined for OCR.

Definition of Collateral

Check what you remember

Read the wording for your board, then hide it and explain Collateral in your own words. Rough notes are fine. This is a self-check, with no mark or grade.

Reference: OCR

An asset (like property) that a borrower offers to a lender to secure a loan.

OCR · Sources of finance (study guide)

Topics that use Collateral

Sources of finance (OCR GCSE)

Related terms

Overdraft
Retained profit
Share capital
Trade credit
Crowdfunding

Using Collateral in the exam

Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.

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All Business GCSE terms