Debt financing

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Debt financing is using a loan to secure capital for your business. In debt financing, a creditor agrees to lend money to a debtor in exchange for repayment, with accumulated interest, at some future date. Debt financing is attractive because the business owner does not have to sacrifice any ownership interests in the business, interest on the loan is deductible, and the financing cost is a relatively fixed expense.

See also

• Equity financing
• Category:Finance

External link

This entry includes content from the following Wikipedia article: Debt capital

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