Creditor
A creditor is a person or organisation to whom money is owing. It maybe that they extend credit by giving another entity permission to borrow money which is intended to be repaid in the future.
If a creditor is a single person they may be referred to as personal creditors.
Legal creditors are banks or financiers and will normally have a legal agreement in place with the debtor. This agreement may involve the use of other assets, referred to as collatoral, such as houses or cars to create what is know as a secured loan, in this case it gives the creditor the right to confiscate these if the loan is not repaid.
Unsecured loans do not hold collatoral but will normally also involve contractual agreements. It is likely that creditors will investigate a borrowers previous history to see if they are creditworthy, in simple terms - have they borrowed before and have they repaid. Banks and other organisations use credit scores to assess how likely a person or organisation is to borrow and pay of a loan.
[edit] Related articles on Designing Buildings
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Guidance for conversion of traditional pre-1919 stone buildings.
Industrial heritage in the Ruhr
A marked difference to the fate of industrial landscapes in the UK.
Communities will be able to build their own clean energy.
Why diversity and inclusion matters for SMEs
CIOB’s D&I Charter shows how practical changes can support long-term growth.
Cut electricity bills to power growth
Coalition sends joint letter to the Chancellor.
Gasholders: a history in pictures. Book review.
Recognition, influence and growth
SocEnv identifies three strategic pillars in new strategy to 2045.
Discover the future of roofing, cladding and insulation.
New guidance for professional practice, cultural change and regulation in social housing.
The heritage of nuclear and conventional power stations.
New measures to stop people being ripped off
Government to protect families from cowboy builders and aggressive bailiffs.
New Futurebuild showcase brings an innovation-first approach.