Property (Finance)
Real estate asset; valuable collateral for loans.
Formula
Loan-to-Value (LTV) = Loan Amount / Property Value × 100
Real World
Costa Coffee used its owned high-street properties as collateral to secure bank loans for expansion, with lenders confident the buildings provided security if repayments were missed.
Exam Focus
When property is used as collateral, always note the risk of asset seizure — missing this downside is the most common error in finance questions.
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