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Creditor (Meaning, Definition,Types of Creditor)

What is Creditor?

Any person or organization who sales goods or services in credit or grant money on credit to the other person or organization is known as a creditor. A business that provides suppliers or services to companies or an individual and does not demand payment immediately is also considered as a creditor.

Who is Creditor?

The creditor may be a person, supplier, or Bank that has provided credit to the company. The amount owed to the creditor is reported on the company balance sheets as liabilities. Creditors can be classified as personal or real. People who loan money to friends or families are known as personal creditors. Real creditors have a legal contract with borrowers, sometimes granting the lender the right to claim any of the debtor real assets (For example, bank or finance company).

Types of Creditor

There are two types of Creditor

1) Secured Creditor      2) Unsecured Creditor

1) Secured Creditor

The Creditor or Lender who gives credit to any Company, Firms, or Individual and they have power to lien their assets.

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