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D-collateral Dictionary

Collateral

An asset pledged to a lender as security for a loan

All termsIntroduced in Module 2Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
An asset pledged to a lender as security for a loan
How to use it
List what the venture can pledge: land, equipment, livestock, stock or a contract. If there is no acceptable collateral, plan finance around equipment leases, contract farming or grants.
South African benchmark
Freehold farmland is the standard collateral for South African commercial agricultural loans.
Country notes
Applies the same way in all five markets.
Go and read
C2 Lesson 2.3
Calculate it
T-C-03 Loan Repayment Calculator
Library sources
LIB-A019
See also
Title deed, Dead capital, Leasehold
Twelve-month cash flow showing money out before money in and the lowest cash pointTwelve months of cash: money out first, money in laterJFMAMJJASONDRed dot: the lowest cash point, the working capital you must fundMoney in (sales)Money out (inputs, labour, loan)Running cash balance
From Module 2, Money for the Farm, where this term is introduced.

Introduced in C2 Money for the Farm.