Business Debt/Commerce


Good morning!

Pls i beg you tel me the meaning of Debtors and creditor with good example i search in net but it confuse me a lot iam a 1st puc student

Creditor can have many meanings, often related.  For example in a legal setting, a company or person who has a monetary judgment entered in their favor by a court is called a creditor or judgment creditor.   

A creditor might also represent someone who has extended credit in a business transaction.

The term creditor usually refers to a party (it could be a person, a company, or even the government) that has some claim on a second party. Person one is the creditor and is to whom the money is owed.  In order for the debt to be legal, the creditor must have provided some property or service

A debtor is someone (like the creditor it can be a person, a company, or even the government) that owes an obligation or DEBT to someone else.

If it helps, try to think about it this way:  when you go into debt (for a mortgage or something similar) you are a debtor.   If you loan money to a friend, you are extending credit and in that situation you are a creditor.  

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Michael Fay


My focus and specialty is in credit, so that the risk of the debt itself is minimized. This means understanding it, predicting it, and helping to correct it. Having worked in contracts & credit, I have also worked with all of the related documents such as Guarantees (personal and corporate), and Security Agreements (aka UCC’s or “liens” – but I caution you in using those interchangeably).


I have a broad background with more than 15 years in the credit industry. Ten years with Dun and Bradstreet, first as a field reporter creating reports, then in customer service, finally I served as the credit manager designing risk models for many national and international customers through D&B’s Outsourcing function. Five years with another publicly traded firm where I created the credit department and then served as credit manager for North America. At both companies we used both business and consumer data. You probably know that both business and personal credit have scores; what you might not know is how many different types of scores there are. I am familiar with and have used many different scores in each. Also be aware that each credit type (business & personal) is unique with different processes and different time frames. I have served on the board of directors for companies in many states and still serve in some capacity in a few. I contribute to credit publications and work with the non-profit arm of the SBA called SCORE.

ACA International * NACM * Credit Risk Managers * SCORE (SBA)- Counselors to America’s Small Business * Payment Card Industry Network * * D&B Alumni * Psi Chi, National Honor Society for Psychologists

BIS in Business and Psychology, University of Minnesota * MBA is still in progress (on-line)

Awards and Honors
State of Colorado - State finals in Accounting and Advanced Accounting. * D&B Leadership Winner (3 times) * D&B Leadership Finalist (3 times) *

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