Borrower

The borrower is the person who borrows in accounting when the company borrows from banks, and records in accounting the amount borrowed as loans and the expenses related to the loan as loan expenses or borrowing interest.

Borrowing capacity reflects the ability of an individual or business to obtain loans based on income, assets, credit history, and repayment capability.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Borrower** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.