What is the relationship between the debtor and the creditor?

There are many different individuals, businesses and parties that cause the financial system to work. These parties include creditors and debtors. The creditor is the one who expands or lends money to individuals, business organization or government, while the debtor is the one who borrows. The relationship between the debtor and the creditor may be positive if everyone adheres to the conditions that have been agreed at the beginning of the contract, but it does not take too much to make the sentiment negative if one party fails to withhold a bargain.

The retailer and the supplier may represent the debtor and the relationship of creditors. Although it is a retail outlet function for the sale of goods to customers, business activities would not be possible without supplier. New retail and supplier relations develop every day because products developers seek to get the greatest possible distribution. When delivery, the retailer may sign a contract for new goods The supplier is likely to send an account for the company later. DebtThe lender and the creditor in the retail situation can agree with some incentives, such as discount prices, in exchange for placing orders of a certain size.

In the financial markets, there may be the relationship between the debtor and the creditor. Bonds are issued by corporations, governments and municipalities. Imiters are considered to be debtors and investors who buy bonds that are debt instruments are considered creditors.

It is the debtor's liability to repay the creditor according to the conditions that include the duration of the repayment, the interest rate bound to the loan value of the debtor and the principal of the loan. In this scenario, the relationship between the debtor and the creditor is the debtor's relationship with the holders of his own capital. For example, if the issuer becomes insolvency and the F or Bank Protection files, the bond holder is a creditor who holds seniorities for repayment over shareholders.

Banks and consumers can also establish a debt -based relationship. WITHThe needy and the bank in this situation represent the debtor and creditors. The creditor extends the loan or loan for a certain amount and the debtor agrees that it pays these funds under the terms of the contract. In the event that payments of delay or standing, there are probable consequences for the debtor, such as fees and defects that appear in the credit history of this consumer.