What is a debtor?

A debtor is a customer who still has to pay an invoice. The party to whom an invoice must be paid is the creditor.

Suppose Company A delivers products or services to Party X. If Company A sends an invoice to Party X, they are a debtor from that moment on. Party X has purchased products and still needs to pay for them. In this case, Company A is the creditor.

Where does the word "debtor" come from?

Someone who still has to pay an invoice is called a debtor. This person or company actually has a debt to the party that sent the invoice. The English word for debt is debt. And that is where the word debtor comes from.

How do I ensure that debtors pay?

All actions you take to make a debtor pay fall under accounts receivable management. Think, for example, of sending a payment reminder (dunning notice) if the customer has not yet paid after the due date.

It is important that this process is well-organized. This way, you prevent customers from walking away because you are, for example, too aggressive.

What if a debtor really does not pay?

If a debtor has not paid the invoice even after your efforts, it is a good idea to engage a professional party. There are various parties that can collect your invoice, such as a collection agency or a lawyer. However, there are major differences in costs and methods among these parties.

At a collection agency, invoices are paid in 92% of cases after all. And since this is done without the intervention of a judge, it is to the advantage of both the debtor and the creditor.