Glossary definition

What is a debtor?

A debtor is a person or organisation that owes money. This will often be owed for services or goods, or because they have borrowed money.

In most instances, the debtor will have a legal obligation to pay the debt. The person they owe the money to is known as a creditor.

In a company, individual debtors might be recorded in a sales ledger, which is sometimes called a debtors’ ledger.