Creditors - Hutchinson encyclopedia article about Creditors Printer Friendly
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creditor
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creditor

Individual or business organization that is owed money by another individual or business. Money owed to creditors by a company is a current liability on the company's balance sheet. If the credit rating of a company deteriorates, so that creditors believe that there is an increased risk to extending credit to the company, those creditors may demand that their bills be paid and refuse to extend new credit. This could have a disastrous effect on the cash flow position of the company and lead to its going bankrupt.
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