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A person, company, or other organization that owes money to another individual, company, or organization. Generally speaking, a debtor acquires debt for a specific purpose, such as to fund a college education or to purchase a house. In business and government, debt is often issued in the form of bonds, which are tradeable securities entitling the bearer to repayment at the appropriate time(s), making the issuing government or business the debtor. A debtor almost always compensates a creditor with a certain amount of interest, representing the time value of money. However, some areas of finance, especially Islamic banking, do not allow debt with interest.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
debtors (accounts receivable)the money owed by individuals or firms because they have bought goods, services or raw materials for which they have not yet paid (trade DEBTORS), or because they have borrowed money. See CREDITORS (ACCOUNTS PAYABLE), DEBT, DEBTORS RATIO, CREDIT CONTROL, WORKING CAPITAL, BAD DEBT.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson