Define: Trade Creditors

UK Accounting Glossary

Definition: 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

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

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

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

Are trade creditors assets or liabilities?

Current liabilities are normally settled from the amounts available in current assets. The main element of this is normally “trade creditors” – amounts owed by a business to its suppliers for goods and services supplied. A trade creditor is the opposite of a trade debtor.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Trade Creditors. Payroll & Accounting Heaven Ltd. November 12, 2019
Chicago Manual of Style (CMS):
Trade Creditors. Payroll & Accounting Heaven Ltd. (accessed: November 12, 2019).
American Psychological Association (APA):
Trade Creditors. Retrieved November 12, 2019, from website:

Definition Sources

Definitions for Trade Creditors are sourced/syndicated from:

This glossary post was last updated: 23rd December 2018.