Creditor

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. 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 and 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.

Read more about Creditor:  Accounting Classification, Creditors Power During Insolvency

Other articles related to "creditor, creditors":

Attachment (law)
... is a legal process by which a court of law, at the request of a creditor, designates specific property owned by the debtor to be transferred to the creditor, or sold ... For example, a declaration of bankruptcy will severely limit the ability of creditors to attach the property of the debtor ... or other property exemptions which limit the ability of creditors to attach the debtor's primary residence, vehicle, and/or personal effects. ...
Creditor Reference - Implementation
... A vendor adds the Creditor Reference to its invoices ... pays the invoice, the company writes the Creditor Reference instead of the invoice number in the message section, or places a Creditor Reference field in its payment ledger ...
Subordination (finance) - United States Law - Subordination of Debt
... Subordination is the process by which a creditor is placed in a lower priority for the collection of its debt from its debtor's assets than the priority the creditor previously had, In common parlance, the ... of right to collect the debt is important when a debtor owes more than one creditor but has assets of insufficient value to pay them all in full at the time of a default ... Except in bankruptcy proceedings, the creditor with the first priority for collection will have the first claim on the debtor's assets for its debt and the 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 creditors will begin to deal with the Insolvency Practitioner and readily accept annual reports when submitted ...
Creditor Reference - Structure
... The Creditor Reference is an alphanumeric string, 25 characters long, with the letters "RF" at the beginning ... The remaining part of the Creditor Reference (up to 21 alphanumeric characters) is the Reference ... The content of the Creditor Reference can be determined without any restrictions ...

Famous quotes containing the word creditor:

    Here were poor streets where faded gentility essayed with scanty space and shipwrecked means to make its last feeble stand, but tax-gatherer and creditor came there as elsewhere, and the poverty that yet faintly struggled was hardly less squalid and manifest than that which had long ago submitted and given up the game.
    Charles Dickens (1812–1870)

    A certain creditor had two debtors; one owed five hundred denarii, and the other fifty. When they could not pay, he canceled the debts for both of them. Now which of them will love him more?
    Bible: New Testament, Luke 7:41,42.

    A creditor is worse than a slave-owner; for the master owns only your person, but a creditor owns your dignity, and can command it.
    Victor Hugo (1802–1885)