Covering Business Credit

Credit Questions and Answers
Business Credit and Collections
Commercial Credit Management

Return to Q and A 2004Home

spacer
 
Doctor Credit

What are the advantages of becoming a secured creditor?

Answer: Assuming that you are referring to perfecting a security interest under Section 9 of the Uniform Commercial Code, the short answer is that having a secured position reduces credit risk. You may be able to repossess your collateral; you may have pre-judgment remedies against the debtor; and in a bankruptcy your claim will receive a priority over other trade creditors.

 
spacer spacer

 


 

Web

www.coveringcredit.com