Non-current liabilities are the debts a business owes, but aren’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.