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Creditor

A creditor is an individual or organization that lends money or extends credit to another party, known as the debtor. In this relationship, the debtor agrees to repay the borrowed amount, often with interest, over a specified period. Creditors can include banks, financial institutions, or even individuals who offer loans. Essentially, if someone owes you money because you provided them with a loan or credit, you are their creditor. This arrangement is fundamental to financial systems, enabling people and businesses to access funds for various purposes, such as purchasing goods or investing in opportunities.

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    A creditor is an individual, business, or financial institution that lends money or extends credit to another party, known as the debtor. The creditor expects to be repaid, usually with interest, according to the terms agreed upon. This relationship can occur in various contexts, such as loans, credit cards, or service agreements. If the debtor fails to repay as agreed, the creditor may take legal action to recover the owed amount. Essentially, creditors provide the financial resources that allow debtors to make purchases or investments they might not be able to afford upfront.