Unsecured Creditor
Definition of 'Unsecured Creditor'An individual or institution that lends money without obtaining specified assets as collateral. This poses a higher risk to the creditor because it will have nothing to fall back on should the borrower default on the loan. A debenture holder is an unsecured creditor. |
|
Investopedia explains 'Unsecured Creditor'It's uncommon for individuals to be able to borrow money without collateral. For example, when you take out a mortgage, a bank will always hold your house as collateral for the loan in case you default. One exception is large corporations, which often issue commercial paper that is unsecured. |
Related Definitions
Articles Of Interest
-
What Is A Corporate Credit Rating?
Is the bond you're buying investment grade, or just junk? Find out how check the score. -
An Overview Of Corporate Bankruptcy
If a company files for bankruptcy, stockholders have the most to lose. Find out why. -
Taking Advantage Of Corporate Decline
A bankrupt company can provide great opportunities for savvy investors. -
Lenovo Still Far From Getting Its Due
Lenovo's leading share in emerging market IT seems undervalued. -
How Line of Credit Works
A line of credit is an arrangement where a bank offers a maximum loan amount that the borrower can draw upon at any time. The borrower – which can be an individual, business or government ... -
Market Summary for May 24 2013
The major U.S. indices moved lower this week, ahead of the long Memorial Day weekend. After reaching all-time highs last week, many traders attributed the sell-off to a combination of profit ... -
Ralph Lauren Q4 Earnings Up 35%: Buy or Sell?
Ralph Lauren announced Q4 earnings that were 35% ahead of last year. Unfortunately, it also was very cautious on its 2014 revenue growth. Although its stock's had a good run in the past year ... -
Pandora Goes To Up To 11
Pandora is showing that it can deliver on its model and its goals. -
Playing The Big Winners In U.S. LNG
For U.S. producers of natural gas, exporting that bounty is seen a necessary way to profit from higher demand overseas as well as higher prices. The potential of those exports received a major ... -
Salesforce.com Still Growing And Still Expensive
Cloud software and services continues to take share in the enterprise IT market, and Salesforce.com (NYSE:CRM) remains a major player within that trend. Even so, growth is slowing and the company ...
Free Annual Reports