Sir between loan notes secured on NCAs and Bank loan secured by floating charge, which one is less risky and also please highlight the reason?
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Loan notes secured on NCAs and Bank loan secured by floating charge
As far as the lender is concerned the loan notes are less risky because they are more certain to get their money back if the company goes into liquidation (because they are secured on specific assets).
But if Bank loan is also secured by floating charge on CAs then between bank loan and loan notes secured on NCAs which one will be less risky?
I answered you in my previous post.
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