Long Term Debt is one of the multiple forms of capitalizing a business. It includes bonds, secured notes and mortgage notes. In the world of small business, the most common form of long term debt is secured notes, most likely with recourse. As an owner of a business you need to understand how this information is presented in your financial statements.
Current Portion of Long-Term Debt
The current portion of long-term debt is the portion of the principal balance that is owed during the following 12 months. Current portion of long-term debt changes from month to month as debt is serviced via payments to the financial institution issuing the debt.