Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025
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