Secured Creditors Definition

A Secured Creditor Is A Creditor That Has A Lien On An Item Of Your Property.

A secured creditor is a creditor who claims a security interest in property. Mortgage lenders and car lenders are secured creditors. Mortgage lenders are the most common example of secured creditors:

Property Can Be Real Or Personal.

A secured creditor will usually be a large financial institution such as a bank, building society or invoice factoring company. One who holds some special monetary assurance of payment of a debt owed to him or her, such as a mortgage, collateral, or lien. Secured creditor is a lender that provides collateralized debt.

One Who Holds Some Special Monetary Assurance Of Payment Of A Debt Owed To Him Or Her, Such As A Mortgage, Collateral, Or Lien.

One who is owed a collateralized debt. They lend you money and keep the house as collateral. A secured creditor holds security over some or all company assets and in a liquidation, they are in the most favourable position as they are paid as a priority over other creditors.

A Fully Secured Creditor Is A Lender Who Secures His Debt With Collateral, Such As A Mortgage Or A Lien On Personal Property.

Personal property is stuff you own. A secured creditor has a lien or collateral on the debt, depending on the nature of the goods. They hold a ‘charge’ over the company they are seeking payment from, such as property.

What Is A Secured Creditor?

In the event of the bankruptcy of the debtor, the secured creditor can enforce security against the assets of the debtor and avoid competing for a distribution on liquidation with the unsecured creditors. When business is running smoothly and a company is solvent, the fact that security is held over your premises may not appear to be a problem. The collateral “secures” the debt.