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December 14, 2005
Long-Term vs. Short-Term Debt
When writing a business plan, many people are unaware of the difference between long-term and short-term debt. Investors pay close attention to your financial statements, so it is important to get them right. If you are not 100% comfortable with preparing financial statements, we recommend purchasing a business plan template or consulting with an accountant.
The distinction between long-term and short-term debt is quite simple. Short-term debt is any debt that you will need to pay back within the next year. If you are given more than a year to pay your debt back, it is considered long-term debt. It's that simple, so make sure you get it right!
Posted by Jon at December 14, 2005 8:36 AM
Comments
I am in the service industry for almost 29 years. after all these years, I was working for someone. Its now that I have decided to go on my own. I need help and assistance in organising my business and make it a success. I cant afford to fail since i have spend almost all my life working for someone. Therefore, i have to work out an effective business plan for both short and long term and woke the plan towards success ffor the rest of my life.
Posted by: Bala Managaram at December 4, 2006 9:52 PM