Term Out

What Does Term Out Mean?
The transfer of debt within a company's balance sheet without acquiring new debt. This is done through the capitalization of short-term to long-term debt.

Investopedia explains Term Out
By changing the characteristic of debt on the balance sheet, companies can improve their working capital situation as well as take advantage of lower interest rates, based upon the projection that they will rise in the future.

Related Terms

Balance Sheet
Current Assets
Current Liabilities
Debt
Long-Term Liabilities
Working Capital
More Related Terms

Related Links

Reading The Balance Sheet - Learn about the components of the statement of financial position and how they relate to each other.
Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.
Trying To Predict Interest Rates - Understand the various factors that influence them so you can learn to anticipate their movements for profit.

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