Unsecured Debt

Unsecured Debt is debt that is not backed by specific collateral, meaning the lender relies primarily on the borrower’s general creditworthiness and has a lower priority claim than secured creditors in a liquidation. In capital structures, Unsecured Debt typically carries higher interest than secured debt to compensate for risk, and Unsecured Debt terms can include covenants and guarantees to mitigate the lack of collateral.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.