Guarantee vs. Collateral — What's the Difference?

Guarantee is a legal term more comprehensive and of higher import than either warranty or "security". It most commonly designates a private transaction by means of which one person, to obtain some trust, confidence or credit for another, engages to be answerable for him.

Something pledged as security for repayment of a loan, to be forfeited in the event of a default

A formal assurance (typically in writing) that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality

A person having the same ancestor as another but through a different line.

An undertaking to answer for the payment or performance of another person's debt or obligation in the event of a default by the person primarily responsible for it.

Additional but subordinate; secondary

Provide a formal assurance, especially that certain conditions will be fulfilled relating to a product, service, or transaction

Descended from the same stock but by a different line

Promise with certainty

Situated side by side; parallel

Something that assures a particular outcome or condition

Situated or running side by side; parallel.

A promise or assurance, especially one given in writing, that attests to the quality or durability of a product or service.

Coinciding in tendency or effect; concomitant or accompanying.

A pledge that something will be performed in a specified manner.

Serving to support or corroborate

A guarantor.

Of a secondary nature; subordinate

A guaranty.

Of, relating to, or guaranteed by a security pledged against the performance of an obligation

To assume responsibility for the debt, default, or miscarriage of.

Having an ancestor in common but descended from a different line.

To assume responsibility for the quality or performance of

Property acceptable as security for a loan or other obligation.

To undertake to do, accomplish, or ensure (something) for another

A collateral relative.

To make certain

Parallel, along the same vein, side by side.

To guaranty.

Corresponding; accompanying, concomitant.

To furnish security for.

Being aside from the main subject, target, or goal.

To express or declare with conviction

(genealogy) Of an indirect ancestral relationship, as opposed to lineal descendency.

Anything that assures a certain outcome.

(finance) Relating to a collateral in the sense of an obligation or security.

A legal assurance of something, e.g. a security for the fulfillment of an obligation.

(finance) Expensive to the extent of being paid through a loan.

More specifically, a written declaration that a certain product will be fit for a purpose and work correctly; a warranty

Coming or directed along the side.

The person to whom a guarantee is made.

Acting in an indirect way.

(colloquial) A person who gives such a guarantee; a guarantor.

Having the phloem and xylem adjacent.

To give an assurance that something will be done right.

(finance) A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay.

To assume or take responsibility for a debt or other obligation.

A collateral (not linear) family member.

To make something certain.

(anatomy) A branch of a bodily part or system of organs.

In law and common usage: A promise to answer for the payment of some debt, or the performance of some duty, in case of the failure of another person, who is, in the first instance, liable to such payment or performance; an engagement which secures or insures another against a contingency; a warranty; a security. Same as Guaranty.

(marketing) Printed materials or content of electronic media used to enhance sales of products (short form of collateral material).

One who binds himself to see an undertaking of another performed; a guarantor.

(anatomy) A thinner blood vessel providing an alternate route to blood flow in case the main vessel becomes occluded.

The person to whom a guaranty is made; - the correlative of guarantor.

(archaic) A contemporary or rival.

In law and common usage: to undertake or engage for the payment of (a debt) or the performance of (a duty) by another person; to undertake to secure (a possession, right, claim, etc.) to another against a specified contingency, or in all events; to give a guarantee concerning; to engage, assure, or secure as a thing that may be depended on; to warrant; as, to guarantee the execution of a treaty.

Coming from, being on, or directed toward, the side; as, collateral pressure.

A written assurance that some product or service will be provided or will meet certain specifications

Acting in an indirect way.

A pledge that something will happen or that something is true;

Related to, but not strictly a part of, the main thing or matter under consideration; hence, subordinate; not chief or principal; as, collateral interest; collateral issues.

A collateral agreement to answer for the debt of another in case that person defaults

Tending toward the same conclusion or result as something else; additional; as, collateral evidence.

Give surety or assume responsibility;

Descending from the same stock or ancestor, but not in the same line or branch or one from the other; - opposed to lineal.

Make certain of;

A collateral relative.

Promise to do or accomplish;

Collateral security; that which is pledged or deposited as collateral security.

Stand behind and guarantee the quality, accuracy, or condition of;

A security pledged for the repayment of a loan

Descended from a common ancestor but through different lines;

Serving to support or corroborate;

Accompaniment to something else;

Situated or running side by side;