Estimated amount that can be recovered from sale of collateral under practical enforcement conditions. It is usually lower than market value. Lenders use it to estimate security coverage and loss risk. In secured lending, it affects collateral comfort, charge creation, valuation, enforceability and the lender’s recovery position if the account turns stressed. The practical credit value comes from enforceability and control, not only from the value entered in the system. For example, the market value of a property may be high, but the realizable value can be lower after discounts, legal delays and sale costs. It matters because collateral quality is useful only when the security is correctly identified, valued, documented and legally enforceable. The common caution is to separate estimated value from enforceable value and to confirm ownership, charge ranking, insurance, documentation and perfection status.