What does it mean to 'use your company as collateral' on a mortgage?

I'm studying accounting. I have a project where I have to cost a product and do a capital investment appraisal. It mentions that I should plan to purchase a new property and should finance it using a 'mortgage on my existing company'. What does this mean? Does it mean remortgage? Or take out a new mortgage and if I fail to make the payments, they can take the capital out of my company?

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