DEBT FINANCING Definition

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DEBT FINANCING is raising money through selling bonds, notes, or mortgages or borrowing directly from financial institutions. You must repay borrowed money in full, usually in installments, with interest. A lender incurs risk and charges a corresponding rate of interest based on that risk. The lender usually assesses a variety of factors such as the strength of your business plan, management capabilities, financing, and your past personal credit history, to evaluate your company's chances of success.

Learn new Accounting Terms

BEST ASK is the lowest quoted offer of all competing Market Makers to sell a particular stock at any given time.

DEALER is an institution that owns and offers securities.

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