short-term debt
Short-term debt
Short-Term Debt
short-term debt
That portion of debt that is payable within one year.Consumers typically include only debts maturing in one year in their schedule of short-term debts.Businesses usually segregate debt into the current year's portion of all debt,with the balance,if any,categorized as long-term debt. When completing a form financial statement for a lender, it is important to find out that lender's definition of short-term debt. Placing debts in the wrong category could result in a failure to meet certain critical ratios,and denial of the loan.