| gen. |
debt financing (When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid. INVESTOPEDIA EXPLAINS "DEBT FINANCING" The other way of raising capital is to issue shares of stock in a public offering. This is called equity financing. Alexander Demidov) |
