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Debt financing

• Raising money for working capital or for capital expenditures by selling bonds, bills, or notes to individual or institutional investors. In return for the money lent, the individuals or institutions become creditors and receive a promise to repay principal and interest on the debt. The other major way of raising capital is to issue shares of stock in a public offering. See also: Equity Financing.

 
 

Follow this link for all the terms related to debt.

 
 Embedded terms in definition
 Capital expenditure
Capital
Debt
Equity financing
Equity
Institutional investors
Interest
Issue
Principal
Public offering
Return
Shares
Stock
Working capital
 
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