Creditor
An entity or person to whom money is owed by a debtor.
Business Glossary provided by Plannit.ai
Creditors can be classified into two types: personal or real. Personal creditors are those who are owed money based on personal faith and trust, while real creditors have a right to be paid from the proceeds of a specific property of the debtor. Creditors can also be secured or unsecured, where secured creditors have a collateral claim on the debtor's assets, and unsecured creditors do not.
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