creditors


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Creditor

A person or company to whom one owes money. A creditor may be a bank or another company. In the case of bonds and personal debt, the creditor is often an individual. A creditor may be secured, meaning that the debt has a collateral, or unsecured, meaning that the debt has no specific collateral.

creditors (accounts payable)

the money owed to individuals or firms because they have supplied goods, services or raw materials for which they have not yet been paid (trade creditors), or because they have made LOANS. Amounts falling due for payment within one year are counted as part of a company's CURRENT LIABILITIES in its BALANCE SHEET, while amounts falling due after more than one year appear as part of long-term liabilities.

Some creditors, called secured creditors, are offered collateral or security for their loans by means of a fixed charge on a specific asset owned by a debtor, which they could legally claim in the event of default on the loan.

Other secured creditors are offered security by means of a ‘floating charge’ on the debtors' assets, which would offer them priority in claiming the proceeds from the sale of these assets in the event of default. Unsecured creditors such as trade creditors have less security in the event of default. See DEBTORS (ACCOUNTS RECEIVABLE), CREDIT. CREDITORS RATIO.

References in periodicals archive ?
Creditors' losses were calculated on the basis of an assessment of which dividend the creditor in question would have obtained if the director's dispositions had not been made, provided that the bankruptcy proceedings would have occurred at the earlier time when the company's situation was certainly deemed to be hopeless.
The clerk of the Bankruptcy Court will generally send creditors a blank form to complete, First, the creditor needs to make sure it marks its claim in the proper classification section, such as secured, general unsecured or priority unsecured.
The professional services firm said the payout will go to creditors to Powertrain, the part of MG Rover that manufactured engines and gearboxes.
The Notice of Bankruptcy Filing also details where and when the Meeting of Creditors is scheduled and what the specific deadlines are for the creditor to object to discharge or exemptions.
As Park is a representative director of the company, analysts said that the official document is the creditors' ultimatum to the chairman.
It enables him to obtain a temporary reprieve from paying his maturing debts in the hope that he can come up with a mutually acceptable repayment plan with creditors under the supervision of the court.
DUBAI: Kuwait's Investment Dar has offered to hand assets to creditors immediately, a source close to the company said, in a bid to win them over to its latest plan to restructure debts of 813 million dinars ($2.7 billion).
Huarong Energy, formerly Rongsheng Heavy Industries, has proposed to issue new shares worth a total of HKD20.53bn ($2.64bn) for subscription by its bank and supplier creditors.
Trade creditors often face the issue of whether they are required to continue providing goods or services on credit to a customer that has filed chapter 11 bankruptcy.
Summary: Trade creditors often face the issue of whether they are required to continue providing goods or services on credit to a customer that has filed ...
Registration will commence at 9.30am and Scheme Creditors Creditors are requested requested to arrive no later later than 10.00am inorder to register.
CREDITORS should get involved in the insolvency process - that's the view of Huddersfield man Peter Sargent, of business recovery firm Begbies Traynor.