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Something owed by one person to another. In commerce a debt is one that can normally be expressed in terms of money or money’s worth. It may also carry interest covering the period during which it is due but not paid, although common business usage allows an agreed period of interestfree credit before payment is demanded. Creditors often offer inducements by way of attractive discounts for quick settlement of debts. The usual term of credit in the busiworid is one month. Debts which are not intended to be paid until a longer time has elapsed are sometimes covered by a bill of exchange or some other negotiable paper. Longer-term debts, carrying interest, take the form of mortgages, etc. Debentures are a common form of long term debt in the company world.

Reference: The Penguin Business Dictionary, 3rd edt.