Trade Creditors

Business, Legal & 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

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.

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. September 28, 2021
Chicago Manual of Style (CMS):
Trade Creditors. Payroll & Accounting Heaven Ltd. (accessed: September 28, 2021).
American Psychological Association (APA):
Trade Creditors. Retrieved September 28, 2021, from website:

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: 3rd December, 2019 | 1,785 Views.