Meaning & use
trade debtor
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Meanings
nouncountablebusinessfinance
A company or person that owes money to a business for goods or services bought on credit.
Grammar: Countable noun; use 'a trade debtor' for one, 'trade debtors' for several.
Patterns
- a trade debtor of a company
- trade debtors are increasing
- record something as a trade debtor
The firm has several trade debtors who have not paid their invoices for over 60 days.
In the balance sheet, trade debtors are listed under current assets.
We need to send reminders to all trade debtors before the end of the month.
noununcountablebusinessfinance
The total amount of money owed to a business by its customers, treated as a single item in accounts.
Grammar: Used as an uncountable noun when referring to the aggregate figure; often appears with 'the'.
Patterns
- trade debtor days
- reduce trade debtor
- the trade debtor balance
The finance team is trying to reduce trade debtor by tightening credit terms.
A high level of trade debtor can put pressure on a company's cash flow.
The accountant calculated trade debtor days to see how quickly customers pay.
Word forms
| plural | trade debtors |
|---|
Common combinations
- trade debtor days
- Trade debtor days measure the average time it takes for customers to pay.
- trade debtor balance
- The trade debtor balance increased by 10% this quarter.
- reduce trade debtor
- The company aims to reduce trade debtor by offering early-payment discounts.
- major trade debtor
- One major trade debtor went bankrupt, causing a significant loss.
- trade debtor turnover
- A low trade debtor turnover ratio suggests slow collection of payments.
- aging of trade debtors
- The aging of trade debtors shows how long each invoice has been outstanding.
Synonyms and how they differ
- accounts receivable
- More common in US English and often used in the plural; it refers to the same concept but is the standard accounting term.
- debtor
- A general word for anyone who owes money; trade debtor specifically means a customer who owes money to a business for goods or services.
- receivable
- Often used in the plural 'receivables' to mean amounts owed to a company; it is broader and can include non-trade amounts.
Opposites
Word family
- trade credit noun
- The arrangement allowing a business to buy goods or services now and pay later.
- trade creditor noun
- A supplier to whom a business owes money for goods or services bought on credit.
- debtor noun
- A person or organization that owes money.
Commonly confused: trade debtor or trade creditor? trade debtor or debtor?
trade debtor vs trade creditor
A trade debtor owes you money; a trade creditor is someone you owe money to. They are opposites in accounting.
trade debtor vs debtor
Debtor is a general term for anyone who owes money, while trade debtor is specifically a customer who owes money for goods or services bought on credit.
Practice
Which of the following best describes a trade debtor?
Choose one answer.
A trade debtor is a customer who owes money to a business for goods or services bought on credit. Option A describes a trade creditor, option C a lender, and option D an employee, none of which fit the definition.
Make it your own
Write a sentence using “trade debtor”, then check it and compare it with the examples above.