Unsecured Financing
/ʌnˈsɪkjʊərd ˈfaɪnænsɪŋ/
Definitions
- (n.) A type of financing that is not backed by collateral, relying solely on the borrower's creditworthiness and promise to repay.
The company obtained unsecured financing to fund its expansion without pledging any assets.
Forms
- unsecured financing
- unsecured financings
Related terms
See also
Commentary
Unsecured financing involves higher risk for lenders due to lack of collateral, often resulting in higher interest rates; clear documentation of credit terms is critical.
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