trade creditors

Trade creditors are suppliers or vendors from whom a business has purchased goods or services on credit, meaning the business has received the items but hasn't yet paid for them. This arrangement allows companies to acquire necessary supplies without immediate payment, often with a specified credit period. Trade creditors are recorded as liabilities on the company's balance sheet, reflecting an obligation to settle these debts in the future. Managing trade creditors effectively is crucial for maintaining good supplier relationships and ensuring healthy cash flow.