Creditor – A supplier who is owed money and therefore money will be going OUT of your bank account to pay them
Just as credits in accounting record all the money flowing OUT of a bank account, a company will have a creditor list which will include all the businesses that have supplied a service or good or loaned money and who now needs paying.
The key to remembering what a creditor is, is to think money has to go OUT of the company’s bank account to pay the supplier.
CREDITOR – think OUT of the company’s bank account
To remember that creditor is OUT use the following mnemonic:
Don't take your credit card or (creditor) any other card out (out), you can pay them later.