Floating Debt

Business, Legal & Accounting Glossary

Definition: Floating Debt


Floating Debt


Full Definition of Floating Debt


Continuously refinanced short-term debt for a company’s ongoing operations. The advantage of floating debt is that there is a chance to benefit from reductions in interest rates. In addition, interest rates on long-term debt are often higher than interest rates on short-term debt, so the company might be saving itself money by refinancing short-term debt as opposed to borrowing long-term. However, the downside is that the company might suffer if interest rates rise and they have to refinance at a higher cost.


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March 29, 2024 https://payrollheaven.com/define/floating-debt/.
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Floating Debt. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/floating-debt/ (accessed: March 29, 2024).
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Floating Debt. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/floating-debt/

Definition Sources


Definitions for Floating Debt are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.