A company’s debt obligations that mature (fall due) after one year or more (or beyond one business cycle at least). Examples include bank loans, debentures, and bonds. A debt is said to be funded when its interest payments are made by the borrowing company to the lender over the term of the debt which exceeds 12 months.
Funded debt also includes such debt obligations as income bonds, mortgage bonds, collateral trust bonds, convertible debt, debt securities with detachable warrants and other types obligations maturing more than one year from date of issue or one year before expiration date.
Funded debt is also known as a long-term debt.
