This is the party that owes money against debt. In traditional lending, this falls on the party that has taken out a loan; in Accounts Receivable Finance, it falls on your customer who owes money for either a product provided or services rendered. They are responsible for making payments directly to the Receivables Finance Company within the terms stated. In this case, your credit limit per customer is dependent on their credit ratings. While the term Account Debtor does not change, the responsibility may shift upon the customer’s agreement.
