The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

What Is A Secured Creditor?

A secured creditor is a creditor that has filed a UCC form against certain assets which says in the case of your default, he has first rights to those assets. In real estate a mortgage is filed to secure the creditor. Banks always want as much security as possible. Try never to secure a purchase of a business with your home.

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