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Creditors are individuals or entities to whom a debt is owed. This debt can take many forms, including loans, unpaid bills, or other financial obligations. When a person or business incurs debt, they become a debtor, and the entity to whom they owe the money is the creditor. Creditors have a legal right to be repaid according to the terms of the agreement under which the debt was created.

There are various types of creditors. Secured creditors have a claim on specific assets of the debtor as collateral for the debt. If the debtor defaults, the secured creditor can seize and sell the collateral to recover their losses. Examples include mortgage lenders and auto loan providers. Unsecured creditors, on the other hand, do not have collateral. Their claims are based on the debtor's promise to pay. Credit card companies and suppliers who extend trade credit are common examples of unsecured creditors.

Creditors play a vital role in the economy by providing capital that fuels investment, consumption, and economic growth. However, their rights and how they can pursue repayment are subject to legal frameworks, often involving bankruptcy laws and collection regulations. When a debtor faces financial distress, creditors may work with them to restructure debt, or they may initiate legal proceedings to recover the owed amount. The priority of repayment among different types of creditors is typically established in insolvency proceedings.