debt financing

debt financing definition - business

debt financing

The acquisition of funds by borrowing. For example, a business may use debt financing to raise funds for building a new factory. Corporations find debt financing attractive because the interest paid on borrowed funds is a tax-deductible expense. Compare equity financing.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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