What is the primary difference between a 'secured' and an 'unsecured' commercial bank loan?
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A
Secured loans carry higher interest rates because of added administrative costs
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B
Secured loans are backed by collateral the lender can claim upon default; unsecured loans rely solely on the borrower's creditworthiness
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C
Unsecured loans are only available to government entities
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D
Secured loans are always short-term; unsecured loans are always long-term