The main difference between short-term debt and long-term debt is the length of the repayment period. Short-term debt can be defined as any business debt that is due within one year or during the current fiscal year of a business. Long-term debt can be defined as any business debt that is due after one year from the reporting date.
Some examples of short-term debt are:
Accounts payable, short-term loans, commercial paper, stock dividends, taxes due, lease payments, and salaries & wages.
Some examples of long-term debt are:
Bank debt, mortgages, bonds, debentures, long-term loans, pensions, deferred compensation, and deferred revenues.
Please note the examples above for short-term and long-term debt are not exhaustive.
NEWITY LLC and its affiliates are not lenders participating in the SBA’s 7(a) loan program. NEWITY LLC is a lender service provider for Northeast Bank, a lender participant in the SBA’s 7(a) loan program. SBA 7(a) loans are ultimately processed and approved by a lender participant in the SBA’s 7(a) loan program.