Definition of Payer:

  1. The term payer refers to an entity that makes a payment to another entity. While the term payer generally refers to someone who pays a bill for products or services received, in the financial context, it often refers to the payer of an interest or dividend payment.

  2. The term is also specifically used when discussing swap agreements. In an interest rate swap, the payer is the party who wants to pay a fixed interest rate and receive a floating rate of interest.

  3. Party responsible for the payment of a bill of exchange or invoice; party that signs the check. Also called writer.

  4. A person or organization that gives someone money that is due for work done, goods received, or a debt incurred.

How to use Payer in a sentence?

  1. In the context of fixed income instruments, a payer refers to the issuer of the debt; this may be a periodic coupon or interest payments that are made to the investor.
  2. The term payer is used to describe any entity that issues a payment to another entity.
  3. The industry is one of the biggest payers of corporation tax.
  4. If you are payer in an interest rate swap, it can be financially advantageous if you correctly predict that interest rates are going to climb.

Meaning of Payer & Payer Definition