Definition
Collateral is the asset pledged as security for a loan to reduce lender's risk. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
You know Collateral is doing work when it changes a weekly choice — price, hire, channel, or kill. The working definition: Asset pledged as security for a loan to reduce lender's risk.
Common mistake
Using Collateral as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Coercive monopoly
Market situation where one company dominates through unfair or illegal practices.
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Collaboration
Working together with others to achieve common business goals.
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Collateralized debt obligation (CDO)
Complex financial security backed by a pool of loans or other assets.
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Collective bargaining
Negotiation process between employers and labor unions for employment terms.
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