Debt financing

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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

	Related Terms
	Asset based financing Back to back financing Bridge financing Cost of debt Cost of lease financing Cost of long term debt Debt Debt capacity Debt capital Debt covenants Debt displacement Debt due Debt equity ratio Debt instrument Debt leverage Debt limit Debt limitation Debt market Debt ratio Debt relief Debt securities Debt security Debt service Debt service coverage ratio Debt service parity approach Debt swap Debt to capital ratio Debt to equity ratio Debtor in possession financing Equity financing Federal financing bank Financing decisions Financing flows Firm's net value of debt Funded debt Interest rate on debt Junior debt subordinate debt Long term debt Long term debt ratio Long term debt to capitalization Long term debt to equity ratio Long term financing Multi option financing facility Net financing cost Off balance sheet financing Original issue discount debt oid debt Permanent financing Planned financing program Production payment financing Project financing Required total financing Secured debt Secured short term financing Senior debt Short term debt Spontaneous financing / spontaneous liabilities Standard debt provisions Structured debt Subordinated debt Temporary financing Total debt Total debt to equity ratio Total debt to total assets Total financing required Trade debt Unfunded debt Unsecured debt Unsecured short term financing

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