short-term debt

Definitions (2)

1. Debt with a short maturity, usually one year or less.
2. A part of a company's balance sheet within the current liabilities section. Short-term debt is usually due within one year. If a company has more short-term debt than available cash or investments to cover the debt's payments, the company could be forced to take on additional debt and could be in poor financial health.

Use short-term debt in a sentence

We had built up a lot of short-term debt, but it was nothing that we could not take care of in our company.

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We recently contacted our bank to inquire as to short-term debt necessary to fund increased production during our peak season.

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The stock market crash forced many companies to take out long term loans so they could avoid defaulting on their short-term debt.

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