Debtors, also known as Clients or Customers, are the companies or individuals that your business provides goods and services to. When you supply them on credit (i.e., they pay later), they owe you money — making you their creditor.
The Relationship in Simple Terms
Customer (Debtor): Receives goods or services now and agrees to pay later, under the agreed terms.
You (Creditor): Provide the goods or services upfront and wait for payment.
