Trade Creditors

Business, Legal & Accounting Glossary

Definition: Trade Creditors


Trade Creditors

Quick Summary of Trade Creditors


Persons who supply goods or services to a business in the normal course of trade and allow a period of credit before payment must be made.




What is the dictionary definition of Trade Creditors?

Dictionary Definition


trade creditor is a supplier who has sent your business goods or supplied them with services, who you haven’t yet paid.

Suppliers who are owed payment for raw materials or a product’s component parts by the manufacturer. In business accounting applications, trade creditors and the amounts owed are listed in the company’s balance sheet as liabilities.


Full Definition of Trade Creditors


A trade creditor is a supplier that provides goods and services to its customers on credit terms. The amounts owed are stated on the balance sheet of a customer as a current liability, and on the balance sheet of the trade creditor as a current asset. A trade creditor typically analyses the financial statements, credit reports, and payment histories of its customers when deciding how much credit to extend to them.

The amount that goes on your business’s balance sheet for trade creditors is the sum of all its unpaid invoices from suppliers, as at that point in time.


Trade Creditors FAQ's


What are trade creditors?

Trade creditors are the bills you need to pay. They’re sometimes called creditors, trade creditors or accounts payables. Trade creditors might also refer to the suppliers you owe money to.

Consider trade creditors to be bills that your company hasn’t paid yet. For example, you may owe a supplier for raw supplies. Alternatively, you may owe money for an unpaid energy or phone payment.

Assume you acquire certain supplies on credit from a supplier. They will issue you an invoice for the materials. The amount on that invoice is part of your trade creditors in your records. That invoice will be added to your supplier’s list of trade debtors. Trade creditors and trade debtors are thus two sides of the same transaction.


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March 29, 2024 https://payrollheaven.com/define/trade-creditors/.
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Trade Creditors. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/trade-creditors/ (accessed: March 29, 2024).
American Psychological Association (APA):
Trade Creditors. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/trade-creditors/

Definition Sources


Definitions for Trade Creditors are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th January, 2022 | 0 Views.