Who is considered a creditor?

A creditor is defined as a party that lends funds or extends credit to another party, effectively allowing them to borrow money, goods, or services with the expectation of repayment at a later date. In the context of the question, the correct answer refers to a party that sells on credit, which means they provide goods or services to a buyer, allowing the buyer to pay at a later date instead of requiring immediate payment. This transaction establishes a creditor-debtor relationship, as the seller (the creditor) expects to receive payment from the buyer (the debtor) in the future.

The other choices do not accurately represent the role of a creditor. A borrower of funds is the opposite of a creditor; they receive funds under an agreement to repay. A financial advisor provides guidance and advice on financial matters but does not typically engage in lending or extending credit. A debtor in a loan agreement is someone who owes money to a creditor, which again highlights the distinction between the lender (creditor) and the borrower (debtor).