different between debtors and creditors
Answers
Answer:
Investopedia A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securities – such as bonds – the debtor is referred to as an issuer
Investopedia A creditor is an entity (person or institution) that extends credit by giving another entity permission to borrow money intended to be repaid in the future. ... People who loan money to friends or family are personal creditors.
Explanation:
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Explanation:
DEPTOR
, at its most basic adaptors is a party that owes money to another party who that's party is can vary dramatically it can be a single person it can be a small business it can be a very big business it can even be a government if money is owed the party lowing that money is known as deptor that they have the dept money is known usually in a lump sum. Repayments are then made over a predetermined period of time until the loan is paid off usually in addition to the value of of the loan there will be interest in addition this is where in incentive comes to loan money the interest can be considered profit on the transfer it's quite possible to be a doctor and to have practice at the same time part equally as a small business.
Creditor
a creditor is a party who had loaned the money to the debtor it doesn't have to be cash alone can comprise anything that that has perceived or particle value for example stocks or equipment creditors are generally comprised of banks building societies and the other Financial institute however there is a rising trend for alternative such as peer to peer lending there may be other business or event government institute that might into business the term creditor is not exclusive to anyone party cooler field or institution it is very possible that you as a small business might find yourself being the creditors to a deptor.