What is a hypothecation?
Hypothecation is a kind of security / collateral in which movable property is pledged against issuance of a finance facility. In hypothecation title or possession of the property pledged remains with the owner of such property. Assets that can be hypothecated include plant and machinery, stocks, house hold items, office equipment. Also a hypothecated asset can be re-hypothecated in relation to another business deal.
