Creditor

MEANING OF CREDITOR

A creditor is a natural or legal person who has the right to demand, and be satisfied with, the payment of a debt or obligation. Creditor and debtor are totally related concepts, one cannot exist without the other.

In short, the debtor is the one who owes money and the creditor is the one to whom it is owed.

The subject becomes a creditor at the moment the debt is originated and ceases to be a creditor when the debt is settled.

The difference between supplier and creditor is that the supplier provides goods or services linked to and integrated in the activity of the company and the creditor provides goods or services that are not directly related to the activity of the company.

Related terms
Guarantee | Debt | Debtor | Lender | Loan | Borrower | Supplier | Credit balance | Debit balance