2 min read
Definition
Trade creditors are the suppliers a business owes money to for goods or services bought on credit — and, as a figure, the total owed. It is the same as accounts payable, a current liability.
In plain terms
It is the money you owe suppliers who let you buy now and pay later. Managed well, this trade credit is an interest-free source of working capital.
Why it matters for your company
The trade-creditors balance and your creditor days are a lever on cash: paying within terms but not early keeps supplier goodwill while preserving cash. Stretching too far damages relationships and supply.
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