The establishment of collateral in relation to a loan transaction means that the lender is assured of recovering, if necessary by court action, the material value of the loan. This means that the outreach of financial services is often influenced by the collateral that borrowers can offer, particularly in rural areas where agricultural production risks are perceived as high. Conventional collateral includes the mortgage of land or pledging of moveable assets. It also includes third-party guarantees or endorsements. Poor people have few assets to pledge and land titles are often uncertain. This has led to the use of collateral substitutes such as group guarantees and solidarity funds.