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04 Sep 2022

Warehouse & Wholesale Funding – Senior Note Holder

Mortgage House Low Doc Remortgage

Senior notes are bonds stationed at a higher importance than other debts in case a company announces bankruptcy and falls into liquidation. Senior notes are generally repaid before other debts and are considered to be more secure and mature faster than alternative types of bonds. In short, senior notes are considered more important than additional notes and debts. 

Senior notes are considered more secure than other bonds, resulting in investors earning slightly decreased interest rates. They will also typically take less time to mature than other bonds, taking ten years or less. Senior notes generally refer to unsecured debt that is not backed by collateral. 

At Mortgage House, our lending specialists can answer any questions or concerns you may have about senior note holding and assist you in finding the right business loan or funding type that best suits your business needs. 

Though they are often used in similar ways, senior notes and senior debt are not the same. Senior debt can be used to describe the entirety of a company’s debts with priority status and generally refers to secured debt backed by collateral.

Conclusion

Junior notes are bonds stationed at a lower importance than other debts. They are regarded as riskier than senior notes to lenders. Junior notes must be repaid immediately following senior notes because of their station as subordinated debt. 

Reach out to our lending specialists today for more information and specialized assistance on warehouse and wholesale funding.

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