what is long term debt instrument
Types of Long-Term Debt. Overview. In the business world, long-term debt is money that is owed to lenders for a period of more than one year from the date of the current balance sheet. Long-term debt converts to short-term debt when the period left until the debt must be repaid becomes less than one year with the passage of time. Individuals who finance the purchase of high cost items, such as cars, for terms lasting more than a year are also taking on long-term debt obligations.