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Naily [24]
4 years ago
6

Secured debt means a lender gives you money in exchange for what?

Business
1 answer:
Pie4 years ago
8 0

Secured debt means a lender gives you money in exchange for collateral. Collateral is what is given to someone to secure the repayment of a loan if for some reason the loan can not be repaid. For instance, you give someone your lawn mower and borrow $400, in the agreement it states that the lawn mower was given as collateral, in the event the $400 does not get paid back. If the money is paid back, the lawn mower is given back. If not, the lawn mower is kept.

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