Debtholder: meaning, definitions and examples

Use 'debtholder' when referring to anyone who holds debt instruments issued by companies or governments, generally in a more formal or broad financial context.

• The corporation's debtholders were concerned about the recent drop in share prices.
• Debtholders have the right to receive interest payments before any dividends are paid to shareholders.

Use 'creditor' when referring to anyone or any entity to whom money is owed. This is a general term that can include banks, financial institutions, or individuals.

• After declaring bankruptcy, the company owed millions to its creditors.
• Creditors have the legal right to demand repayment according to the terms of the loan.

Use 'bondholder' specifically when referring to someone who owns bonds, a type of debt security. This term is particularly relevant in the context of government or corporate bonds.

• Bondholders are usually less at risk than shareholders when a company goes bankrupt.
• The government announced interest payments to bondholders would be postponed.

Use 'lender' when referring to an entity or person who provides loans to others. This term is common in personal finance and business lending.

• The bank acted as the primary lender for the new development project.
• Lenders often assess the creditworthiness of borrowers before approving loans.