What term refers to a person or company to whom you owe money?

• A. Debtor
• B. Creditor
• C. Lender
• D. Payee

Answer: (B)

The term used for the person or company to whom you owe money is creditor. In any debt arrangement, you are the debtor—the party who owes money. The creditor is the other side who is owed repayment. A lender is someone who provides the funds, which often overlaps with creditor but focuses on the act of giving the loan rather than the obligation to be repaid. A payee is simply someone who receives a payment, not necessarily tied to a debt. So creditor is the best fit because it specifically identifies the party to whom the debt is owed.