Payments Made in the Ordinary Course of Business

Payments Made in the Ordinary Course of Business refer to regular transactions that a company conducts as part of its day-to-day operations, such as paying suppliers or employees. In the context of Preferential Transactions, these payments are typically not considered preferential because they were made in line with the normal routines of the business, rather than as a way to unfairly favor one creditor over another. This distinction is important in bankruptcy situations to ensure that all creditors are treated fairly and according to established business practices.