There are some concepts that we sometimes misunderstand. Such is the case of the creditor figure, one of the most important that you will find in economic matters, finances ...
If you would like to know what a creditor is, the difference that exists with other concepts such as debtor or supplier, as well as the types that exist, do not hesitate to take a look at what we have prepared for you.
What is a creditor
The word creditor has been defined in many different ways. For example, the RAE defines creditor as "He who has the right to have a debt paid": "The one who has an action or right to request the fulfillment of an obligation." If we approach wikipedia, the conceptualization is somewhat clearer, "That person, physical or legal, who is legitimately authorized to make the payment or fulfillment of a previously contracted obligation."
A very simple way, A creditor is the person who "lends" money to another. For example, it can be a bank that lends money to an individual or a company; or a company that lends it to another. At that moment, that person (natural or legal) becomes the creditor of the other because they have given them money that they have to return.
On a day-to-day basis, you can meet many people who are creditors: the owner of the rental home (if you live in one), the bank if they have lent you money; a supplier if they have supplied you with gender and have given you an invoice that you have not paid yet ...
In general, anyone with whom you have an outstanding debt becomes a creditor, and the same happens with public entities (Social Security, Treasury ...).
Creditor and debtor
When we speak of creditor, it is inevitable that the figure of the debtor comes out immediately since it is closely related to the first. To make it clear to you, A debtor is the person who has the obligation to pay an amount of money to the creditor. In other words, it is the person who receives the money from the creditor and then has to return it.
We speak then of two opposite figures, the creditor, who would be the active subject; and the debtor, who would be the taxpayer of a relationship. In fact, one does not exist without the other. For example, you cannot lend money if you have no one to lend to, and you cannot return money if no one has lent it to you.
Creditor and supplier
On a day-to-day basis, you may hear many concepts and they seem similar, but in reality they are not. This is what happens, for example, with creditor and supplier. They are two totally different concepts and, at the same time, they are so similar that many confuse them. Therefore, we are going to explain both figures to you.
On the one hand, we have the supplier. This is defined according to the RAE comor "said of a person or a company: That provides or supplies everything necessary for a purpose to large groups, associations, communities, etc.", or in other words, the person from whom we buy a good or service that is related to our work activity.
On the other hand, the creditor, according to the definitions that exist, is that person with whom we have contracted a debt necessary for the activity of the company. BUT, that debt is not related to the work activity we do. That is, it allows the operation of a business, but it would not really influence work activity.
The most visual example would be the following:
Imagine you have a coffee shop. The supplier can be the person or company that serves you the coffee. But the creditor is the company that provides you with electricity, telephone, running water services ...
Now, many times, suppliers, by providing you with the product you need (the raw material), become creditors, but technically, they are not.
Types of creditors
In general, creditors can be divided into two large groups.
Personal creditor
This figure is the one characterizes friends or family who are owed a payment. For example, when you ask your brother for money, or between friends, you lend each other money.
Many times, and in order to repay the debt, it is recommended that there be a legal document that establishes how the debt will be repaid.
Real creditor
The real creditor is that figure where there is a legal contract between the creditor and the debtor. That is, everything is tied and well tied to know what is lent and how it is going to be returned, as well as what to do in case of claim to the debtor if he does not meet the payment he owes within the established period.
However, in addition to this great classification, there are many other types of creditors that you should know, such as pledge, hereditary, unsecured, mortgage ... Actually, there will be as many creditors as there are types of debts or obligations, hence name them all it can be quite tedious.
How can a person become a creditor
Today, there are many examples where you can see that you really are a creditor of someone else. But, according to the civil code, a person could become such a figure if any of these reasons should occur:
- Because a binding contract will be concluded between two people.
- Because there is an imperative of law in which there is an obligation with respect to another (for example, to pay maintenance, a pension ...).
- For a civil liability, due to a crime or an act that motivates that situation.
However, a person who is a creditor cannot demand that the obligations be satisfied when he or she wants, for this, there are a series of deadlines and, until it is reached, cannot force payment. For example, the owner of an apartment cannot require tenants who are renting to pay him the monthly payment of the apartment on the 15th if it is stipulated that it is paid at the end of the month.