When you start your business, you likely apply for a loan; the Bank makes you sign a General Security Agreement, pledging the assets of your business (and likely personal assets) to cover the loan in case something goes wrong.
In other words, the bank is a secured creditor.
The Canada Revenue Agency holds Directors of a Corporation and owners of Sole-Proprietorships accountable for ‘Trust Funds’ – GST/HST and Payroll Taxes. Therefore, CRA is also secured.
Often if you lease equipment or finance equipment through a bank or other third party, they too will likely require a General Security Agreement to protect their interests.
But what about the money you personally invested in your business?