Who is referred to as a creditor in a business context?

In a business context, a creditor refers to an entity or individual that has provided funds or goods to a business with the expectation of being repaid. When a business owes cash, it means that it has received something of value but has not yet settled the payment for it. Therefore, the person, business, or institution that has extended credit to the business—whether through loans, accounts payable, or other financial arrangements—is classified as a creditor. This relationship is crucial to understanding the financial obligations a business has and helps in assessing its overall financial health and liquidity.

The other choices describe different roles or relationships in a business but do not accurately define a creditor. A business that purchases goods on credit is a debtor, as it is the one responsible for repayment. A financial institution providing loans certainly acts as a creditor in many cases, but it is not the only type. Stakeholders with voting rights may have an interest in the company but are not designated as creditors unless they are directly involved in lending or extending credit.