Debtors meaning: Learn what debtors and

Learn what debtors and creditors are, how they differ, and how they are shown in financial statements. Debtors are customers who owe money to a business, while creditors are suppliers or vendors who are owed money by a business. Except in certain bankruptcy situations, debtors can choose to pay debts in any priority they choose. But if one fails to pay a debt, they have broken a contract or agreement between them and a creditor. Debtor is a core concept in corporate finance and accounting. Understand its definition , benefits, and explore the latest Debtor trends here. The entity or person that extends the credit facility is called the creditor & the entity or person that owes money to the creditor is the debtor . Let’s understand the details of debtor with example.