Short-Term Debt

What is Short-Term Debt?

Short-term debt refers to borrowed money that a company must repay within one year. It includes loans, credit lines, and other forms of financing used to meet immediate funding needs. Short-term debt is recorded as a current liability on the balance sheet and is often used for managing cash flow or covering temporary expenses.

Examples include bank overdrafts, short-term bank loans, and the current portion of long-term debt due within a year.