Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

Loan notes secured on NCAs and Bank loan secured by floating charge

MMax7y ago
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?
John MoffatJohn MoffatTutor7y ago#1
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).
MMax7y ago#2
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?
John MoffatJohn MoffatTutor7y ago#3
I answered you in my previous post.
This topic is locked — no new replies.