Creditor – Meaning and Definition

Creditor refers to the individual that has to take some benefit or sum of amount from another person or group of persons.

A Creditor can be a person, government agency, or any institution that has to take goods/services or sum of amount from another entity (Debtor).
Debtor ad Creditor

As per above diagram, “Y“ has to take sum of amount from “X”. Therefore “Y” is creditor of “X”.

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