Choose your...

Country Language
Don't miss out
Subscribe to QuickBooks and
get 90% off for 6 months
Claim now
Claim now
Buy now and get
90% off for 6 months
See plans & pricing
for 12 months
When purchased in bundles of 10
50 %off for 3 months
50 %off for 12 months
  • Invoices
  • Expenses
  • Reports

What is Debt?

Debt (Definition)

Debt refers to an amount owed by a business or individual to another party, usually money. Many businesses use debt to make large purchases they cannot afford at a specific time. There is an arrangement that allows one party to borrow a set amount with the agreement that the debt is repaid within a set time, usually with interest. Some examples of debt are good debt, bad debt, secured and unsecured debt. Good debt allows a business to borrow money to purchase what is needed to build the business, this includes mortgages, educational loans, or buying goods and services. Bad debt is when a purchase decreases in value immediately after purchase, such as cars, TVs, or computers. Secured debt requires a promise of repayment and putting up collateral (something that can be sold to recover any money borrowed). Unsecured debt does not require any collateral.

Ready to run your business better with QuickBooks Online?