Answer: Here is a basic
definition: A secured creditor is a company [or an individual] that has
a claim against a debtor company that is secured by the pledge of collateral
and/or a lien on one or more assets of the debtor company.
In contrast, an unsecured claim is one in which a creditor has no special
assurance of payment. Typically unsecured creditors make sales on open
account terms based on the creditor's assessment of the creditworthiness
of the debtor company under consideration.