Phylum: Arthropoda. Class: Arachnida. Order: Araneae. Family: Theraphosidae. Genus: Brachypelma. Species: B. vagans. Domain: The Redrump Tarantula belongs to the domain Eukarya because it obtains a true nucleus, and membrane bound organelles. These same traits can be seen in many organisms we know even wasabi! Learn more about wasabi.
In simple words, collateral is an asset which borrower pledge to the lender as a security against the loan. In case borrower failed to pay back the loan amount to the lender, lender can sell the asset to recover his loan amount hence reduces the risk of lender.
The primary difference between debt and equity financing is that debt must be repaid at maturity, while there is no obligation to repay equity financing. Interest must be paid on debt while the company is under no obligation to issue dividends on equity financing. The interest paid is tax deductible while dividends are not. Finally, debt holders do not have the right to vote on company matters as equity holders do.