Debt

Definition

Debt is money borrowed by one party from another under the condition that it is to be paid back at a later date, often with interest. In the context of entrepreneurship, it can be used to finance the startup and operations of a business.

Related terms

Interest: The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Loan: A sum of money that is borrowed and expected to be paid back with interest.

Credit Score: A numerical expression based on a level analysis of an individual's credit files, representing the creditworthiness of an individual