Business Glossary

business or individual that has extended credit and is owed money.

party that extends credit, such as a trade supplier, a bank lender, or a bondholder.

any lendor who, in the course of business, regularly extends credit, repayable by agreement, by a second party, the debtor. The loan may be repayable in several equal installments over a specified period, or in certain business loans, repayable in full at the option of either the borrower or the lender. A lender who takes an assignment of collateral has a claim on the borrower's assets, whereas a lender who lends on the strength of a borrower's character can look only to the borrower's future income.

one to whom money is owed by the debtor; one to whom an obligation exists. In its strict legal sense, a creditor is one who voluntarily gives credit to another for money or other property. In its more general sense it is one who has a right by law to demand and recover of another a sum of money on any account.

one who is owed money.

Examples: Creditors include:

• bond holders
• loan companies
• mortgage lenders