A creditor is a person, business, or entity to whom someone owes money or a debt. It’s someone who has provided goods, services, or a loan with the expectation of being repaid. When you’re a creditor, you’ve extended resources to another party, creating a financial obligation on their part. For example, if you borrow money from a bank, the bank becomes your creditor.
Creditors typically have the legal right to demand repayment according to agreed terms and might take actions to recover their money if the debtor doesn’t fulfill their obligation.
