What's the meaning of Preferential Creditor?



What's the meaning of Preferential Creditor? ..

Answer / Ganesh Yadav

A preferential creditor is a creditor who has a priority claim over other unsecured creditors in case of a company's liquidation. Preferred creditors are usually those who have provided essential services or supplies to the company, such as employee wages, taxes, or certain types of loans. They are paid before other unsecured creditors.

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