Short Term Debt 

Short Term Debt refers to any financial obligations a company must repay within one year from the balance sheet date. It is a key component of a company’s current liabilities and impacts liquidity management and working capital. 

Examples include: 

• Bank overdrafts 

• Short-term business loans 

• Trade credit (accounts payable) 

• Notes payable within 12 months 

• Current portion of long-term debt 

Lenders, investors, and financial analysts closely monitor short-term debt levels to assess a company’s liquidity risk and ability to meet immediate financial obligations.