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jjolivette jjolivette
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Posts: 850
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6 years ago
What are the main methods of debt financing? What is the major source of debt financing for most corporations?
Textbook 
Business Essentials, Canadian Edition

Business Essentials, Canadian Edition


Edition: 8th
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#1
6 years ago
The two main methods are long-term loans (which extend three to ten years, usually from chartered banks but may also be from insurance companies, credit companies, and pension funds) and corporate bonds (which represent a promise by the issuing company to pay the holder a certain amount of money on a specified date, with stated interest payments in the interim). Corporate bonds are the major source of debt financing for most corporations because of the large amounts of money that are available for loan
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