Debt Financing

A definition of debt financing is financing by selling bonds, bills or notes to individuals or institutions in order to raise funds to operate a business. Debt financing topics usually cover where and how to get a business loan, and the types of loans available to small business owners. One of the main disadvantages of debt financing is that your company must have sufficient cash flow to handle the interest payments. Debt financing is attractive because you do not have to sacrifice any ownership of the firm in order to raise money. Debt financing is generally considered to be an inexpensive source of capital for businesses.