, and any other debt with a maturity
of longer than one year. Long-term debt is used for capital outlays
, which usually involves a business' need to buy the basic necessities for its operations, such as facilities and major assets
. It is also called funded debt.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
long-term debt see LOAN CAPITAL.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
Technically, that portion of any debt that will come due after 1 year from the current date. A newly made 30-year mortgage would have 1 year of payments posted to shortterm debt on the accounting books of the borrower, and 29 years posted to long-term debt. In common parlance, though, it is simply any debt with a maturity greater than 1 year from the time of making.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.