What is a creditor
A creditor is the individual or legal entity entitled to demand payment of a debt. In SEPA, it’s the party issuing the direct debit against the debtor’s account.
TL;DR
- Creditor = the one being paid; debtor = the one paying.
- In SEPA each direct debit identifies the creditor with their CID (Creditor Identifier).
- There are commercial, financial and public creditors.
Common types
- Commercial creditor: company selling on credit.
- Financial creditor: bank, fund.
- Public creditor: tax authority, social security, city hall.
- Judicial creditor: someone with a court ruling in their favour.
In SEPA
As a SEPA creditor you need:
- A Creditor Identifier (CID) — compute it here.
- Signed mandates from each debtor.
- A direct-debit contract with your bank.
Conclusion
Understanding your creditor role (commercial, financial, etc.) determines which SEPA direct-debit type you can issue (CORE or B2B) and what paperwork you need.
