Debtor is a core concept in corporate finance and accounting. Understand its definition , benefits, and explore the latest Debtor trends here. A debtor is someone who has borrowed money or received goods or services on credit and is obligated to repay the amount owed. Learn about the legal relationship, rights, obligations, and challenges of debtors in finance and accounting. debtor in American English (ˈdetər) noun a person who is in debt or under financial obligation to another (opposed to creditor) Definition of Debtors In general, debtors are the parties who owes debt towards the company. The parties can be an individual or a company or bank or government agency, etc. Whenever an entity sells its goods on credit to a person (buyer) or renders services to a person (receiver of services), then that person is considered as Debtor and the company is known as a creditor . The word ‘ debtor ’ is derived from a Latin word ‘debere’, which means ‘to owe’. In this way, the term debtor ...
