A preferred creditor is a creditor that has a higher priority than other creditors in the event of a company bankruptcy.
Preferred creditors typically include secured creditors, such as banks that have lent money to the company, and government agencies. They are typically paid before unsecured creditors, such as suppliers, in the event of a bankruptcy. Which of the following is a preferential creditor? A preferential creditor is a creditor who is given preferential treatment under the law. This means that they are paid first when a company goes bankrupt. Preferential creditors include employees, the government, and creditors with secured loans.
What are the 7 types of credit?
The 7 types of credit are:
1. Bank loans
2. lines of credit
3. bonds
4. commercial paper
5. asset-based lending
6. factoring
7. equipment financing.
1. Bank loans are the most common type of credit and can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
2. Lines of credit are revolving credits that can be used again and again, up to the credit limit.
3. Bonds are a form of debt that are typically used by large corporations and governments to raise capital.
4. Commercial paper is a short-term debt instrument that is typically used by large corporations to raise working capital.
5. Asset-based lending is a type of financing that uses the borrower's assets, such as inventory or receivables, as collateral.
6. Factoring is a type of financing that allows companies to sell their receivables at a discount in order to raise cash.
7. Equipment financing is a type of credit that is used to purchase equipment.
What are the 4 major types of credit?
The four major types of credit are: corporate debt, municipal debt, mortgage-backed securities, and asset-backed securities.
1. Corporate Debt: Corporate debt is debt that is issued by a corporation in order to finance its operations. This type of debt is typically in the form of bonds, which are issued by the corporation and then sold to investors. The interest on corporate bonds is typically tax-deductible, which makes them an attractive investment for many people.
2. Municipal Debt: Municipal debt is debt that is issued by a municipality, such as a city, county, or state. This type of debt is typically in the form of bonds, which are issued by the municipality and then sold to investors. The interest on municipal bonds is typically tax-exempt, which makes them an attractive investment for many people.
3. Mortgage-Backed Securities: Mortgage-backed securities are securities that are backed by a pool of mortgages. These securities are typically issued by a government-sponsored entity, such as Freddie Mac or Fannie Mae. The interest on mortgage-backed securities is typically taxable, but the payments on the underlying mortgages are typically tax-deductible.
4. Asset-Backed Securities: Asset-backed securities are securities that are backed by a pool of assets, such as loans, credit card receivables, or leases. These securities are typically issued by a special purpose vehicle, which is a company that is created for the purpose of issuing the securities. The interest on asset-backed securities is typically taxable, but the payments on the underlying assets are typically tax-deductible.
What are the 5 categories that make up a credit score?
1. Payment history: This category includes information on your past and present payment patterns, including whether you've made payments on time, late payments, collections, etc.
2. Credit utilization: This category looks at how much of your available credit you are currently using.
3. Length of credit history: This category looks at the length of time you have been using credit.
4. Types of credit: This category looks at the different types of credit you have, such as revolving credit, installment loans, etc.
5. Credit inquiries: This category looks at the number of times you have applied for new credit in the past year. What is the other name of creditor? The other name for creditor is debtor.