person owing money a person or organization owing money to another.
Related definitions of "debtor"
- Also called obligor
Creditor days is a measure of the number of days on average that a company requires to pay its creditors, while debtor days is a measure of the number of days on average that it takes a company to receive payment for what it sells. It is also called accounts receivable days.
The fact is that some debtors fall behind with payments because they can’t pay. In such a situation it is better for a company to try to match settlements to the debtor’s ability to pay. Slow payment is better than no payment. Information from credit reports and account activity should enable
The two new payment instruments are fundamentally different from each other. While SEPA credit transfers are used by debtors to initiate payments, SEPA direct debits are initiated by creditors to collect outstanding receivables. The processing of SEPA credit transfers is relatively straightforward, but SEPA direct debits are more complex because they require a mandate that has to be sent by the creditor to the debtor and signed by the debtor
By Juergen Bernd Weiss
Factoring is provided by financial institutions, for example banks and individual factoring brokers. It is a form of asset-based financing, where the factor provides funding based upon the values of a borrower’s accounts receivable, i.e. corporate debtors. The receivables are purchased by the factor
By Irena Jindrichovska
Definitions of ’debtor’ and meaning of ’debtor’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’debtor’ and other financial terms with our online QFINANCE Financial Dictionary.