Trade Creditors

What are Trade Creditors?

Trade Creditors are amounts which are owed by you to your suppliers, they are sometimes referred to as Accounts Payable or simply Creditors.

If your supplier allows you credit and invoices you for a product or service and you make payment at a later date 30 days 60 days etc, then while you owe the supplier the money they are classified as a creditor of your business.

Trade Creditors are recorded in the balance sheet of the business under the heading Current Liabilities, that means they are payable within a year.

For further information on a Trade Creditors see the Wikipedia definition.

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