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Collateralized lending glossary
These are the key terms behind borrowing against an asset you own, defined in plain English: collateral, custody, lien, UCC-1, valuation, secured loan, and loan-to-value (LTV). Each one is a building block of how a collateralized loan works — so if you've run into a word you didn't know, start here.
- Collateral
- Something you own that backs a loan. If the loan isn't repaid, the collateral can be sold to cover it. On MarketLoan, collateral means one of four asset classes: watches, signed or branded jewelry, loose cut stones, and precious metals.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
- Custody
- Holding your asset safely with a professional partner for the life of the loan — shipped insured, kept in insured storage, tracked the whole time, and returned to you when you repay.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
- Lien
- A lender's legal claim on a specific asset used as collateral, in place until the loan is repaid. It doesn't take the asset away; it records the lender's interest in it.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
- UCC-1 lien
- A public filing that officially records a lender's claim on collateral. "UCC" is the Uniform Commercial Code, the standard US rules for commercial transactions. On MarketLoan, it's filed when your loan agreement is accepted and released when you repay.
- Valuation
- An independent, insured professional's assessment of what your asset is genuinely worth. It's done by someone independent of both you and the people funding your loan, and it's the basis for your loan offer.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
- Secured loan
- A loan backed by collateral you own. Because the lender can fall back on the asset, secured loans are usually priced lower than unsecured loans, which are backed only by your promise to repay.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
- Loan-to-value (LTV)
- The size of a loan compared to the value of the collateral behind it, shown as a percentage. A lower loan-to-value means a larger cushion between the loan and the asset's value. MarketLoan's specific limits are published at launch.
MarketLoan is in development. This describes a planned product, not an offer or solicitation of any security or loan, and not legal, financial, tax, or investment advice.
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