secured creditor
/sɪˈkɜrd krɛdɪtər/ · sɪˈkɜrd.krɛdɪtər
noun
- A person or organization that has a claim on a debtor's assets, secured by a lien or other collateral, and is entitled to be paid before unsecured creditors. In the event of bankruptcy, the secured creditor will have priority over other creditors.
- A creditor who has a security interest in a specific asset or property, giving them a claim on that asset in the event of default or bankruptcy. The secured creditor will repossess the car if the borrower fails to make payments.
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Did you know? The concept of secured creditors is crucial in business and finance, as it provides a level of protection for lenders and investors, allowing them to recover their investments in the event of default or bankruptcy.