Who is considered a secure creditor?

Question

Quizplus · Accepted Answer

A secure creditor is one who has a proprietary or security interest over company assets. This means that they have a legal claim over a specific asset, such as a property or equipment, and can seek repayment of their debt by seizing and selling that asset if the borrower defaults on their loan. A contractual creditor, on the other hand, only has a claim to the borrower's general assets and does not have the same level of security. Being a well-run company or a wealth creditor does not necessarily make a creditor secure.

Who Is Considered a Secure Creditor