The term "preferential" refers to a situation where one option is favored over others. This can occur in various contexts, such as in decision-making, where certain choices are given priority based on specific criteria. For example, a company may offer preferential treatment to loyal customers, providing them with discounts or exclusive access to products. In legal contexts, "preferential" often relates to the rights of creditors. A preferential payment is one made to a creditor that gives them an advantage over others in the event of bankruptcy. This ensures that certain debts are settled before others, which can impact the distribution of assets among all creditors involved.