A person or business to whom a liability is owed is called a creditor. A creditor is an individual, business, or any other entity that is owed money because they have provided goods, services, or loaned money to another party (the debtor)

. In other words, the creditor holds a legal claim against the debtor for repayment of the debt or fulfillment of the obligation

. Creditors can be categorized mainly into:

• Loan creditors such as banks and financial institutions that lend money to businesses or individuals.
• Trade creditors who supply goods or services on credit, expecting payment later

Thus, the creditor is the party to whom the liability is owed, while the debtor is the party who owes the liability