term out noun 1verb 1forms 3 noun1 •The transfer of debt within a company's balance sheet without acquiring new debt often through the capitalization of short-term to long-term debt. verb1 •To finish the term.With little time to master complex policy matters before terming out, legislators have distanced themselves from more challenging policy issues, deferring them to the initiative process. — 2006 formstermed out · terming out · terms out