It may also carry interest covering the period during which it is due but not paid, although common business usage allows an agreed period of interest-free credit before payment is demanded. Creditors often offer inducements by way of attractive discounts for quick settlement of debts. The usual term of credit in the business world is one month. Debts which are not intended to be paid until a longer time has elapsed are sometimes covered by a bill of exchange or some other negotiable paper. Longer-term debts, carrying interest, take the form of mortgages , etc.
Debentures are a common form of long-term debt in the company world.
See Capital gearing , Credit insurance , Debt collecting , Debt servicing . The Penguin Dictionary of Economics 4. Debt servicing The Penguin Business Dictionary 5. All rights reserved.