An account debtor is a person or entity that owes money to another party, known as the creditor, for goods or services that have been purchased on credit or through a loan. In other words, it is the party who is obligated to pay a debt to a creditor. Account debtors are an important part of the accounts receivable financing process, as they are the party responsible for paying the invoice. Factors will assess the creditworthiness of the account debtor before purchasing the accounts receivable, as the risk of non-payment by the account debtor is a key consideration in the financing decision.