Long-term debt is generally viewed as a permanent financing source for the company.

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Long-term debt typically refers to loans and other financing arrangements that extend beyond one year. Unlike short-term debt, which is often used to address short-term needs or to manage cash flow, long-term debt is typically seen as a more permanent source of financing. It can be used to fund large capital investments, expansion efforts, and other long-term initiatives that require significant funding commitments over time. As a result, long-term debt is generally viewed as a longer-term, more stable form of financing for companies compared to other types of debt or equity financing.

Long-Term Debt Is Generally Viewed as a Permanent Financing Source