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A creditor is an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract. Creditors are commonly classified as personal or real.

Those who loan money to friends or family or a business that provides immediate supplies or services to a company or individual but allows for a delay in payment may be considered personal creditors.

Real creditors are banks or finance companies that have legal contracts and loan agreements with the borrower that grant the lender the right to claim any of the debtor's real assets or collateral if the loan is unpaid.

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