In fact, the loans of SMEs in banks are generally short-term loans (generally, the loan period is two years or less). Unless there are good mortgages, guarantees and other benefits, banks are reluctant to issue long-term loans to small and medium-sized enterprises, because small and medium-sized enterprises generally have negative factors such as short survival time and unpredictable development and changes. Such loans are usually classified as short-term liabilities.

On the contrary, in general, large state-owned enterprises have long-term loans (more than two years) from banks, which means that they are long-term liabilities for similar reasons.

Of course, when the specific accounting is pragmatic, it must also be combined with specific business. Long-term liabilities are generally liabilities for more than one year, while short-term liabilities are liabilities for less than one year, so they need to be adjusted according to time.