Is it permissible for a guardian to take property as collateral for a transaction involving an orphan's wealth?

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The issue arises in sales or loans. If a sale involves taking collateral, three scenarios are considered regarding deferred payment (Nasi'a). First, selling an item worth one hundred cash for one hundred or less on credit and taking it as collateral renders the sale void (fasid) because selling for cash is more prudent. Second, selling for one hundred cash plus twenty on credit, taking collateral for the deferred portion, is permissible because if the cash sale is valid, adding to it is beneficial, regardless of the size of the addition. Third, selling for one hundred and twenty on credit and taking collateral is also permissible, according to the Qadi and some Shafi'i scholars. The rationale is that this is common commercial practice, and the guardian is commanded to engage in trade and seek profit, and the collateral removes the element of risk (taghrir).