Who is referred to as a person to whom money is owed?

The term used for a person to whom money is owed is "creditor." A creditor is an entity or individual that lends money or extends credit to another party under the agreement that the money will be paid back, typically with interest or other conditions attached. In financial transactions, creditors play a vital role, as they provide the necessary funds that borrowers may need for various purposes, such as loans for housing, education, or business ventures.

In contrast, a debtor is the person who owes money to the creditor. While the borrower is often synonymous with a debtor in many contexts, the borrower specifically refers to individuals who take out loans. An investor generally refers to someone who allocates resources, typically money, to generate an income or profit, rather than being directly involved in lending or credit relationships in a straightforward sense. Understanding these definitions is critical in real estate and finance to accurately navigate the responsibilities and relationships among those involved in monetary agreements.