What is a creditor?

Definition of a creditor

A creditor is a person that your business owes money to.

Your business's creditors might include suppliers whom you haven't yet paid for the work they've done for you, such as your solicitor, or your accountant. These creditors are also called 'trade creditors'.

Your business might also have other creditors, such as money it owes to HMRC for VAT, or to its staff for wages.

Bookkeeping and tax tips

We are committed to keeping your information safe. Read our Privacy Policy to find out more.

Are you an accountant or bookkeeper?

Find out more about FreeAgent for your practice.