Pledger
A pledgor is a person or company that pledges their assets as security for a loan or credit. This can be anything from real estate and vehicles to valuables or intellectual property. The pledgor provides the lender with a legal guarantee if the debt is not paid. Why become a pledgor? Often it is the lender who requires a pledge as [...]
Pledge
A pledge is a security interest in an asset that gives a lender the right to claim the value realized if the borrower fails to meet their obligations. It is often used in connection with loans and credit agreements. Why is collateral used? Collateral protects the lender from loss and reduces the risk of extending credit. When a customer or business partner pledges an asset [...]
Passive
Liabilities are a fundamental part of any company's balance sheet and provide an insight into how a business is financed - whether through equity, loans or other liabilities. While assets describe what the company owns, liabilities show where the money for those assets comes from. They are therefore an essential component of the company's financial profile and [...].