creditor

Vocabulary Word

Definition

'Creditor' is a term used to describe any person, institution or entity that has lent money or goods and now expects repayment. It's like the shop owner who sells items on credit.

Examples in Different Contexts

In financial technology, platforms managing 'creditor' information require stringent security measures. A fintech specialist might say, 'Our platform employs advanced encryption to safeguard creditor data against unauthorized access.'

Practice Scenarios

Product

Scenario:

The increase in the cost of raw materials can affect our production budget. We need to reassess our expenditure.

Response:

Yes, we could renegotiate our payment terms with the creditors to balance our expenditure.

Accounting

Scenario:

The financial report indicates an increased liability this quarter. This might impact our financial standing.

Response:

That's concerning. It's crucial to pay off our creditors to adjust the liability.