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CreditorLender of money.CreditorAn individual or institution to whom a debt is owed.Creditor Similar MatchesCreditor nationCreditor nationA country whose assets owned abroad are worth more than the assets within the country that are owned by foreigners. Contrasts with debtor nation. CreditorsCreditorsPeople or companies who are owed money by debtors. Creditors committeeCreditors committeeA group representing firms that have claims on a company facing bankruptcy or extreme financial difficulty. Best interests of creditors testBest interests of creditors testThe requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated. Creditor daysCreditor daysA ratio used to work out how many days on average it takes a company to pay its creditors. Calculated by dividing the trade creditors shown in its accounts by its sales, and then multiplying by 365.E.g. A company with creditors of £900,000 and sales of £12m, takes an average 27.37 days to pay its bills.Within reason, the higher the number the better, although if a company is very slow in paying its creditors (say 100 days plus) it is worth asking if this is because it has problems generating enough cash quickly enough to pay them. Further Suggestionssecured creditor |
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