Difference Between Supplier and Creditor
A supplier is that natural or legal person to whom a payment is owed for the purchase of products or services that are directly related to the activity carried out by said person. On the contrary, in the case of the creditor , these purchases are not made up of goods and services that are related to the activity, but rather refer to other reasons or economic concepts.
Although the nature of these two figures may be similar or similar, the most basic criteria of accounting and business economics establish a series of differences between suppliers and creditors depending on the activity they carry out.
Differences between supplier and creditor
In this way, the supplier supplies or provides, as its name indicates, the services or goods closely related to the daily activity of the company or that are necessary for its production and subsequent sale. Following this criterion, suppliers could be considered those that offer raw materials or technological resources for production processes or, in other words, for the sale of the final product to the customer or consumer.
On the other hand, the creditor would be in charge of supplying the production company to which we refer with other types of more varied resources and that serve for the normal operation of the company. Generally, the most common examples are electricity, telephone or running water services, legal or advisory assistants and even security and surveillance companies that protect the facilities.
Vendor and Creditor Examples
Following these basic distinctions, we could consider the example of a guitar factory, which would have other companies as suppliers that supply it with wood for the instruments, strings and various components such as fingerboards or pegs.
Alternatively, you would have creditors such as the electric company that supplies you with light or the telephone company that answers your line to attend to the usual requests.