Why is debt considered as secured loan



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COULIBALY again,as i went through the 8th session i wanted to known why debt is considered in this case as secured loans? does it mean that unsecured loans are not debt and secondly does the increment in the revenue always implies that secured loans will also jump up accordingly thanks

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Debt can be of 2 kinds - Secured or Unsecured. Secured debt is were you attach a collateral to the debt, so in case you cant pay the debt back the bank will sell the collateral to get its money. Unsecured debt is were money is lent by a bank with no collateral. Unsecured debt is typically given in low amounts and also for companies that have strong performance.

There is no connection between increment in revenue and secured debt. Why do you think those 2 are connected ?

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