Glossary

Trade debtors

Trade debtors are the customers who owe you for credit sales — the same as accounts receivable, and a balance whose growth ties up your cash.

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Owedby customers

= receivablescurrent asset

Definition

Trade debtors are the customers who owe a business money for goods or services delivered on credit — and, as a figure, the total they owe. It is the same thing as accounts receivable, a current asset.

In plain terms

It is the money sitting with your customers that you have earned but not yet collected. The higher it climbs, the more of your cash is tied up waiting to be paid.

Why it matters for your company

A rising trade-debtors balance strains cash and lifts your debtor days. Managing it — chasing promptly, tightening terms, or using invoice finance — is central to healthy working capital.