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0 The difference between a creditor and a debtor is that they are polar opposites from each other in terms of finance and business. They are the two sides to a financial transaction that centres around the debtor borrowing money and the credit lending it to them. Under these circumstances it is a good idea for both Creditor or Debtor to have Bookkeepers Hereford based company like https://office-support.co.uk/bookkeeping in your corner to make sure that everything is kept legal and up to date.
A creditor is a some or an organisation that has funds and capital. It may have excess of this and may wish to try and set up a new income stream by lending this surplus to others. It may well have purchased money from the Bank of England with an express desire to lend for a profit from the interest.
A debtor is the opposite. They might not be as financially secure as the creditor but need something or a service to be able to expand a business or simply own something. As a result they will borrow a sum of money and pay it back over a period of time. For the most part the largest sum of money we will never borrow is from a bank or building society for a mortgage.
It is the legal obligation of the debtor to pay this money back to the creditor. Failure to do this can result in a default notice.
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