Account debtor
The customer who owes money on an invoice.
Why it matters
The creditworthiness of the account debtor affects which invoices are approved, at what advance rate, and whether non-recourse coverage applies.
Related terms
Related article: What is invoice factoring?
Related reading
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.