<p>A creditor is an individual, company or entity that has provided goods or services to a business and is owed money. In the <a href="https://www.goforma.com/small-business-accounting/what-is-balance-sheet-profit-loss" target="_blank">balance sheet</a>, a creditor may be listed under the current liabilities or long-term liabilities section.<br></p>
Small Business Accountants
What are Creditors?
Creditors are suppliers, HMRC, banks, and other parties that a UK business owes money to at the balance sheet date. Trade creditors are unpaid supplier invoices; other creditors include PAYE, VAT, and corporation tax owed to HMRC. Creditors sit under current liabilities on the balance sheet and drive the creditor-days KPI, which tracks how quickly the business settles its own invoices.
