Operational creditors

Operational creditors are businesses or individuals to whom a company owes money for ongoing services or goods supplied, such as suppliers, vendors, or service providers. Unlike financial creditors, who lend money or provide loans, operational creditors are paid for their products or services used to run the business. When a company faces financial difficulties and cannot pay these creditors, they may need to resolve the debts through legal processes like bankruptcy or insolvency proceedings. Essentially, operational creditors are the providers of essential supplies and services that keep the business operational.