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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › CREDITORS HEIRARCHY
Hello Sir,
The creditors hierarchy below from lowest risk to highest risk is:
1-secure loans (fixed charge)
2- secure loans (floating charge)
3- unsecured creditors
4-preference shares
5-ordinary shareholders
So this is in the investors perspective
can we say that in companies perspective it is the reverse from low risk to high risk as below :
1-ordinary shareholders
2-preference shares
3-unsecured creditors
4-secure loans (floating charge)
5 -secure loans (fixed charge)
Thank you
Avinash
You have asked this before and I have answered you before!!
https://opentuition.com/topic/creditors-hierarchy/