Non-Current Liability

What Are Non-Current Liabilities?

A non-current liability is money that is not expected to be repaid to the creditor for a year or more.

How it Works

A business will have liabilities. 

A liability is money the business owes to others.

A business will have current liabilities. 

Suppliers are current liabilities

They will be paid in the coming 12-month period. 

A business will also have non-current liabilities. 

These are liabilities that are not expected to be paid to the creditor for a year or more. 

For example, a loan is a non-current liability.