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.

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FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.