If the collateral factor is 85%, it means that you will need to provide 85% of the total loan amount as collateral. This means that if you take out a loan of $100,000, you will need to provide $85,000 in collateral. This will increase your overall loan obligation, as you will need to pay back the full amount of the loan, plus any interest and fees that may be associated with it. This additional obligation can be substantial, so it is important to consider all of the potential costs when taking out a loan with a collateral factor of 85%.