What are non-current liabilities?

Non-current liabilities (definition)

Non-current liabilities are the debts a business owes, but isn’t due to pay for at least 12 months. They’re also called long-term liabilities.

Although payment may not be due within a year, it’s important a business doesn’t overlook its non-current liabilities. It may still have to make payments toward a non-current liability, like a loan, during the year.

Non-current liabilities are an important part of a cash flow forecast. By comparing non-current liabilities to cash flow, a business can see whether it has the ability to pay its future debts and grow.

Examples of non-current liabilities

Non-current liabilities examples are long-term loans and leases, lines of credit, and deferred tax liabilities.

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This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.