A company’s debt obligations that mature (fall due) after one year or more (or beyond one business cycle at least)- i.e., with long term (LT) maturity. Examples include bank loans, debentures, and bonds. A debt is said to be long-term (or funded) when its interest payments are made by the borrowing company to the lender over the term of the debt which exceeds 12 months.

Long-term 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.

Long-term debt is also known as a funded debt.