Accessibility Menu

What Is Short-Term Debt? What It Is and How It Works

By Rachel WarrenUpdated Apr 28, 2025 at 3:14 PM | Fact-checked by Frank Bass

Key Points

  • Short-term debt includes obligations like bank loans that are due within a year.
  • High short-term debt can signal potential financial instability.
  • Effective management of short-term debt is crucial for credit ratings.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.