Security (sikkerhedsstillelse)

Also known as security, collateral, providing security, stille sikkerhed, garanti, depositum

Security is the collective term for whatever a debtor puts up to secure their debt — a charge, a guarantee, a bank guarantee or a deposit.

In practice

Security is what separates a risk from a loss. Without it you are an unsecured creditor, and unsecured creditors typically get nothing in a bankruptcy.

The decision belongs in the credit policy, not in the collections department: how much exposure do we accept without security, and at what point do we require it?

Where it commonly goes wrong

  • Asking for security only once the customer is in trouble. By then you will not get it — and if you do, it can be clawed back into the estate in a subsequent bankruptcy.

In doubt about a claim of your own?

The glossary explains the rule. We look at the case. Call us, or create a free account and send it in — no lock-in, no set-up fee.