creditor

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