Who Are Considered Creditors

The term creditor typically refers to a financial institution or person who is owed money, though its exact definition can change depending on the situation. For example, if you have an outstanding balance on a loan, then you have a creditor.

Who would be considered a creditor?

A creditor refers to someone who extends credit to another person or lends them money with the intention that the borrower, also called the debtor, will pay it back at some point.

What accounts are creditors?

Creditors are individuals, people, or other entities (i.e., organisation, government body, etc.) that are owed money because they have provided goods or services or loaned money to another entity. Generally speaking, you can expect to deal with two types of creditors: loan creditors and trade creditors.