What is an Unsecured Creditor?
A unsecured creditor is someone who has loaned money or given credit to a business without obtaining any form of security on the assets of the business.
For example a supplier might supply goods on credit but does not have any security in the event that the business does not pay and would be referred to as an unsecured creditor.
In contrast a bank might supply the business with a loan but will take security on the assets of the business and is therefore a secured creditor.
For further information on unsecured creditors see the Wikipedia definition.
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