aditiahuja

  1. What are the Advantages of Debt Financing?

    When a Firm borrows money to be paid back in future with interest is called debt financing. It could be a secured as well as an unsecured loan. There are quite a few advantages of debt financing and can help improve the credit score in the long run. The interest rates on Business Loans are usually much lower than the cost of equity. One can also avail tax deductions on the interest paid and hence it gives the debtor tax shields. Debt holders do not have voting rights in the business or in the day ...