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Glossary of Credit Management Terms. Letter U

Uncalled capital:
Shares can be issued but only partly paid and the difference between the face value and the amount paid is known as uncalled capital.

Undischarged bankrupt:
A person who has not been granted his discharge or formal permission to resume business dealings. An undischarged bankrupt cannot seek credit over the sum of £50 without disclosing his position to his creditor, and he may not be a director of a company or engage in business under another name.

Unlimited liability:
A liability to pay all the debts incurred by a business. For a sole trader/proprietor the liability of the owners is not limited to the amount the owner has agreed to invest. All debts of the business must not only be paid out of the assets of the business but also, if necessary, out of personal assets.

Unsecured creditor:
A creditor who has no security for his debt and will therefore rank with other unsecured creditors on an equal basis with no preference in the event of a liquidation or bankruptcy.

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