Glossary · People and paperwork
Creditor
In short
This is an individual or entity to whom money is owed. As a buyer, you need to identify all business creditors during due diligence to understand existing liabilities.
What it means in a deal
When buying a business, a thorough lien search will identify all secured creditors. Any existing business debt not being paid off at closing will require a subordination agreement with your SBA lender, or it must be accounted for in your global cash flow analysis.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Creditor
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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