Creditor
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"Creditors" redirects here. For the 1889 play by August Strindberg, see Creditors (play).
A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. [1] The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property or service. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money.
The term creditor is frequently used in the financial world, especially in reference to short term loans, long term bonds, and mortgage loans. In law, a person who has a money judgment entered in their favor by a court is called a judgement creditor.
The term creditor derives from the notion of credit. In modern America, credit refers to a rating which indicates the likelihood a borrower will pay back his or her loan. In earlier times, credit also referred to reputation or trustworthiness.
Contents
Accounting classification
In accounting presentation, creditors are to be broken down into 'amounts falling due within one year' or 'amounts falling due after more than one year'...
The financial statements presentation is this:
- Long-term liabilities
- 'Long-term creditors'
- Current liabilities
- 'Current creditors'
Creditors Power During Insolvency
In the UK, once an IVA has been applied for and is in place through the courts, creditors are prevented from making direct contact under the terms of the IVA. All ongoing correspondence of an IVA must first go through the Insolvency Practitioner. The Insolvency Practitioner will contact you. The creditors will begin to deal with the Insolvency Practitioner and readily accept annual reports when submitted.
See also
- Accounts payable
- Accruals and deferred income
- Bank loan and Overdrafts
- Bill of exchange payable
- Creditor's rights
- Debenture loans
- Individual Voluntary Arrangement
- Intra-group accounts owed
- IOU (I Owe You)
- Payments received on account
- Proposed dividends
- Trade creditors
References
- ^ Sullivan, arthur; Steven M. Sheffrin (2003). Economics: Principles in action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. pp. 264. ISBN 0-13-063085-3. http://www.pearsonschool.com/index.cfm?locator=PSZ3R9&PMDbSiteId=2781&PMDbSolutionId=6724&PMDbCategoryId=&PMDbProgramId=12881&level=4.
External links
- Long-term liabilities
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Look at other dictionaries:
creditor — cred·i·tor / kre də tər, ˌtȯr/ n: a person to whom a debt is owed; esp: a person to whom money or goods are due compare debtor, obligor general creditor: a creditor who is not secured by a lien or other security interest – called also unsecured… … Law dictionary
creditor — CREDITÓR, OÁRE, creditori, oare, adj., s.m. şi f. 1. adj. (Despre persoane fizice sau juridice) Care a creditat; (despre sume) care se înscrie în creditul unui cont. 2. s.m. şi f. Titular al unui drept de creanţă; persoană sau instituţie care a… … Dicționar Român
creditor — a person to whom or business to which the debtor owes money or that claims to be owed money by the debtor (Glossary of Common Bankruptcy Terms) That person who has a claim, preferred, secured or unsecured, provable under the Bankruptcy and… … Glossary of Bankruptcy
creditor — mid 15c., from Anglo Fr. creditour, O.Fr. creditour (early 14c.), from L. creditor truster, lender, from creditus, pp. of credere (see CREDO (Cf. credo)) … Etymology dictionary
creditor — [kred′it ər] n. [ME creditour < L creditor: see CREDIT] a person who extends credit or to whom money is owed … English World dictionary
Creditor — Cred it*or (kr?d ?t ?r), n. [L.: cf. F. cr?diteur. See {Credit}.] 1. One who credits, believes, or trusts. [1913 Webster] The easy creditors of novelties. Daniel. [1913 Webster] 2. One who gives credit in business matters; hence, one to whom… … The Collaborative International Dictionary of English
Credĭtor — (lat.), Gläubiger, s.d. und Concurs … Pierer's Universal-Lexikon
Credĭtor — (lat.), der Gläubiger … Meyers Großes Konversations-Lexikon
Creditor — Creditor, der Gläubiger … Herders Conversations-Lexikon
CREDITOR — in debitorem quid iuris habuerit, apud Romanos, indigitat ista decemvirorum lex: ERIS. CONFESSI. DEBITI. Q. IURE. IUDICATIS. TRIGINTA. DIES. IUSTEI. SUNTO. POST. DEINDE. MANUS. INIECTIO. ESTO. IN. IUS. DUCITO. NI. IUDICATUM. FACIT. AUT. QUIS.… … Hofmann J. Lexicon universale
creditor — ► NOUN ▪ a person or company to whom money is owing … English terms dictionary
