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Difference between a lender and creditor

The primary users of financial statements are lenders, creditors, and investors. Many students struggled to understand the fundamental difference between a lender and creditor.

A lender is typically a bank where their business is to supply money in exchange for interest. A lender may or may not have an active loan with a company, but if the company wants to receive a loan, then the lender would be a primary user. 

Creditors would be any institution, individual, or company that the company owes money to. So if a lender makes a loan to a company, then they would become a creditor. A creditor could also be suppliers or vendors that the company owes money to. If you gave the company a loan, you would be a creditor.

Ultimately, any entity or individual that is owed money by a company would be a creditor.

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