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Which person is the debtor?

A debtor is a company or individual who owes money. If the debt is in the form of a loan from a financial institution, the debtor is referred to as a borrower, and if the debt is in the form of securitiessuch as bondsthe debtor is referred to as an issuer.

What is an example of creditor?

Another example of a debtor/creditor relationship is if you take out a loan to buy your house. Then you as the homeowner are a debtor, while the bank who holds your mortgage is the creditor. In general, if a person or entity have loaned money then they are a creditor.

Is a creditor a customer?

Generally speaking, a creditor is a supplier: a person, organisation or other entity that sells a product or service as their business. This means that all retailers are creditors because they sell products or services.

Is debtor a current asset or liability?

Debtors are shown under Accounts receivable as a current asset, and creditors come under Accounts payable as a current liability.

What is debtor example?

Debtor refers not only to a goods and services client but also to someone who borrowed money from a bank or lender. For example, if you take a loan to buy your house, then you are a debtor in the sense of borrower, while the bank holding your mortgage is considered to be the creditor.

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