The creditor who has to rely on collateral to secure payment is known as an unsecured creditor.

Name: The creditor who has to rely on collateral to secure payment is known as an unsecured creditor.
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The creditor who relies on collateral to secure payment is known as a secured creditor. An unsecured creditor does not have any collateral to rely upon and therefore may not have as much leverage in the event of a default on the debt.

The Creditor Who Has to Rely on Collateral to Secure