A creditor is actually always a supplier. The one you have to pay. The one who receives money from his debtor. This can be a company, but also a person or an institution. The name comes from credit, which means decrease. Of course, this decrease represents the balance in your bank account when you have paid your invoice. The creditor is then the recipient.
The difference between credit and debit?
Many people confuse them, but a creditor and adebitor are diametrically opposed in accounting. They are opposites. Where one is about an increase in balance, the other is about a decrease. It is therefore important to remember the difference well. Because do you have to book an invoice on one or the other? A creditor stands on the right or credit side of a balance sheet, where the money goes out. The debtor is on the left side of the debit side, where money comes in.
- Meaning debitor: someone who still has to pay money
- Meaning creditor: someone who has yet to receive money.
For you personally, a debtor means someone from whom you still receive money (a customer) and a creditor means someone to whom you still have to pay money (a supplier). As a company with outstanding invoices with your debtors, you are the….