floating debt

Definition
  1. Noun:
    • Short-term debt: "floating debt" refers to a type of debt that is not fixed in terms of repayment schedule and is typically due within a short period, such as one year. It often includes obligations like accounts payable, short-term loans, or other liabilities that fluctuate in amount and are repayable on demand or at short notice.
Usage Examples
  • (Short-term obligations that vary with business activity.)
  • (Short-term government borrowing that is not fixed in maturity.)
Advanced Usage

  • "to reduce floating debt": to lower the amount of short-term liabilities.

    • The firm aims to reduce its floating debt by paying off suppliers more quickly. (To decrease short-term obligations.)

  • "to manage floating debt": to handle or control short-term borrowing.

    • Effective cash flow management helps a business manage its floating debt. (To oversee short-term liabilities.)
Variants and Related Words

  • Floating (adj): not fixed; variable.

    • The floating interest rate changes with market conditions. (An adjustable rate.)

  • Debt (n): money owed.

    • He has a large debt from his student loans. (An amount owed.)
Synonyms
  • Short-term debt: debt due within one year.
  • Current liabilities: obligations due within a short period (often used in accounting).
Related Idioms

  • In debt: owing money.

    • The company is deep in debt after the expansion. (Having significant financial obligations.)

  • Debt burden: the amount of debt that must be repaid.

    • The high floating debt added to the firm's debt burden. (The weight of financial obligations.)