Financial Creditor

A financial creditor is an individual or institution that lends money to a borrower, typically a business or a government. In return for the loan, the creditor expects to be paid back the principal amount plus interest. Financial creditors can include banks, bondholders, or other financial organizations. In cases of bankruptcy, they have a legal claim on the borrower’s assets and are prioritized for repayment before other types of creditors, such as operational creditors, who provide goods or services. Essentially, financial creditors are key players in the lending and credit system, enabling businesses to grow and operate.