Define: Unsecured Creditor

UK Accounting Glossary

Definition: Unsecured Creditor


Quick Summary of Unsecured Creditor


An unsecured creditor is a creditor other than a preferential creditor that does not have the benefit of any security interests in the assets of the debtor.



What is the dictionary definition of Unsecured Creditor?

Dictionary Definition


This refers to a person who is owed money by an organisation but who have not arranged that in the event of non-payment specific assets would be available as a fund out of which that person could be paid in priority to other creditors.


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Full Definition of Unsecured Creditor


An unsecured creditor is 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.


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Cite Term


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Page URL
https://payrollheaven.com/define/unsecured-creditor/
Modern Language Association (MLA):
Unsecured Creditor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 30, 2020 https://payrollheaven.com/define/unsecured-creditor/.
Chicago Manual of Style (CMS):
Unsecured Creditor. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/unsecured-creditor/ (accessed: March 30, 2020).
American Psychological Association (APA):
Unsecured Creditor. PayrollHeaven.com. Retrieved March 30, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/unsecured-creditor/

Definition Sources


Definitions for Unsecured Creditor are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th May 2019.