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What is debt financing and how can i get this funding?

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What is debt financing and how can i get this funding?
posted Jun 20, 2017 by Debolina Charaborthy

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1 Answer

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Debt financing occurs when a firm raises money for working capital or capital expenditures by selling bonds, bills or notes to individuals and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise the principal and interest on the debt will be repaid. The other way to raise capital in the debt markets is to issue shares of stock in a public offering; this is called equity financing.

answer Jun 21, 2017 by Babita Thawani
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