What are aged creditors in simple terms?

Aged creditors are unpaid supplier invoices categorised by how long they've been outstanding - typically 0-30 days, 31-60 days, 61-90 days, and over 90 days. This helps businesses track payment obligations and manage cash flow effectively.

How do aged creditors affect cash flow?

Aged creditors represent money your business owes suppliers. Managing them effectively helps maintain good supplier relationships, avoid late payment penalties, and plan cash flow requirements. Overdue creditors can damage your business reputation and supplier terms.

What's the difference between aged creditors and aged debtors?

Aged creditors are amounts you owe to suppliers (accounts payable), whilst aged debtors are amounts customers owe you (accounts receivable). Both are important for cash flow management but represent opposite sides of your business transactions.

How often should I review my aged creditors report?

Review your aged creditors report monthly at minimum, though weekly reviews are recommended for better cash flow control. This helps identify overdue payments, plan upcoming cash requirements, and maintain good supplier relationships.

What should I do about overdue creditor payments?

Contact suppliers immediately to discuss payment arrangements, prioritise payments based on supplier importance and terms, and ensure accurate records. Consider negotiating extended payment terms if facing temporary cash flow issues.

Can GoForma help with creditor management?

Yes, our accounting services include cash flow management guidance, aged creditor reporting through FreeAgent software, and advice on maintaining healthy supplier relationships. Book a free consultation to discuss your specific creditor management needs.

What are Aged Creditors?

Aged creditors meaning refers to the classification of outstanding debts owed by your business to suppliers and vendors, categorised by how long they have remained unpaid - typically grouped into 30, 60, 90+ day periods to help UK businesses manage cash flow and maintain healthy supplier relationships.

Last updated Feb 2, 2026

1 min read

Written by Jordan MaceyAAT

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<p>An aged creditors report shows who your business owes money to, as well as the amount owed at any given time.</p>

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What are Aged Creditors?

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