English Lexicon

Short-Term Debt

/ʃɔrt tɜrm dɛt/
nounCEFR B2 (Upper)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    A financial obligation that is due to be paid within one year.

    "The company took out a short-term debt to cover its immediate operational costs."
  2. 2

    A loan or credit that is expected to be repaid in a short period.

    "Short-term debts are often used to manage cash flow fluctuations."

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Linguistic Origin & Historical Etymology

The term 'short-term debt' combines 'short-term', which originates from the early 20th century in financial contexts, and 'debt', derived from the Latin 'debitum', meaning 'something owed'. Over time, the phrase has evolved to describe financial obligations due within a year.

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