Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Collateral 
An asset pledged as security for repayment of a loan. The most common forms of collateral are cash, accounts receivable, inventory, machinery and equipment, and property. In traditional asset based lending, the value of pledged collateral will determine how much can be borrowed.
Collateral Access Agreement
An agreement in which a mortgagee or lessor of property where collateral is stored or located acknowledges the liens of the lender and permits reasonable access to the property and collateral based on negotiated terms and conditions.
Collateral Agent
The financial institution that holds the collateral on behalf of the lenders under a syndicated loan agreement as security for performance of the borrower's obligations under the loan agreement.
Collateral Monitoring
The continual process of verifying collateral over the tenure of a financing agreement to reduce credit risk.
Collateral Quality Rating
A rating metric (0 to 9) that quantifies loss upon default by considering collateral type and control, lien position, level of monitoring, value, and advance rates.
Collateral Reserve
A portion of the collateral value allocated to an availability block or availability reserve under the revolving line of credit to protect against decreases in asset values.
Collateralized Debt Obligation (CDO)
A structured financial product that pools together cash flow-generating assets (mortgages, bonds, and loans) and repackages the asset pool in to tranches that can be sold to investors. The tranches in a CDO very in their risk profile based on priority on collateral in the event of default.
Collection Days
Period of time that it takes for a business to receive payments owed in terms of accounts receivable.