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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › loan capital
Could you explain what is meant by unsecured loan?
When you lend money to someone, surely the sensible thing is to hold some sort of security so that, in the event that the borrower cannot repay the loan, at least you’ll still have some asset belonging to the borrower that you could sell and recover some (if not all) of the amount that you lent
But what if you lend money without the benefit of that security?
OK?
