A creditor's primary concern is that it is repaid. The main advantages in taking security from a borrower are to give the creditor:
- rights against specific assets of the borrower if the borrower has insufficient assets to meet the claims of all its creditors
- priority over other creditors of the borrower in receiving payment
- a more efficient way of recovering claims against the borrower, and
- the right to appoint an administrator or receiver over the assets of the borrower, if certain conditions are met