Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 14

Creditors are lenders. They lend your company money so you can purchase assets, which help your business operate. Assets are defined as items you use to make money in your business, like machinery and equipment. You sign a loan agreement with a lender, and that agreement states the interest rate for the loan and when the loan payments are due. You pay interest on the loan and also repay the original amount borrowed — the principal amount.

Instead of a bank loan, you can issue debt directly to the public by selling bonds. The bond certificate states the terms of the bond. That document lists the interest rate and the maturity date. The bond investor is repaid on the maturity date.

A creditor is interested in your ability to pay the interest and repay the loan. Like a shareholder, a creditor wants to see a company that generates earnings and an increasing level of sales. If you create earnings, you eventually collect more cash than you spend. That additional cash pays the principal and interest on the loan.