secured loan; mortgage; advance payment
Meanings
3 senses · 9 examplesverb
to take out a loan using goods, real estate, or securities as collateral
formalFormal financial term used in banking and real estate contexts. The object can be the amount or the purpose of the loan.
He took out a mortgage from the bank to buy a house.
The company decided to use its inventory as collateral to obtain working capital.
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This money shop specializes in real estate mortgage lending.
noun
loan obtained through mortgage or collateral; secured loan
formalRefers specifically to the principal amount borrowed, distinct from the act of borrowing.
The interest rate on this secured loan is lower than that of a credit loan.
He hasn't yet paid off the bank loan.
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Approving a large secured loan requires multiple reviews.
noun
advance payment; prepaid amount; deposit
formalLess common usage. Often appears in construction contracts, large equipment purchases, or rental agreements.
An advance payment is required when signing the contract.
This advance payment will be deducted during final settlement after project completion.
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When renting a house, you usually need to pay an advance equivalent to two months' rent.