===== What is the difference between long-term and short-term debt? =====

Short-term debt is any debt due within 12 months. Long-term debt is all other debt. The balance sheet typically contains two entries:

  * Short-term debt and that component of long-term debt due in the short-term (e.g., you might have a 5 year note that looks like a long-term loan, but those payments on that note that are due during the next 12 months are listed here)
  * The rest of long-term debt

{{keywords>short-term, long-term, debt, loans, balance sheet}}

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