Posted inInvesting
Collateral Validation
What is collateral validation and why is it important? Collateral means what you pledge to secure a loan. It can include assets such as property, vehicles, stocks, bonds, and bank accounts. Collateral is a pledge of property that is usually assigned to secure a loan. The most common form of collateral in the United States is real estate, with financial securities and small business assets also commonly used. Most jurisdictions have laws that limit what can be used as collateral,…