debt financing

Debt Financing

The act of a business raising operating capital or other capital by borrowing. Most often, this refers to the issuance of a bond, debenture, or other debt security. In exchange for lending the money, bond holders and others become creditors of the business and are entitled to the payment of interest and to have their loan redeemed at the end of a given period. Debt financing can be long-term or short-term. Long-term debt financing usually involves a business' need to buy the basic necessities for its business, such as facilities and major assets, while short-term debt financing includes debt securities with shorter redemption periods and is used to provide day-to-day necessities such as inventory and/or payroll. See also: Equity financing.

debt financing

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

debt financing

the financing of firms’ and governments’ deficits by the issue of FINANCIAL SECURITIES such as short- dated company BILLS OF EXCHANGE and government TREASURY BILLS, and, in the case of government, longer-term BONDS. See PUBLIC SECTOR BORROWING REQUIREMENT.
References in periodicals archive ?
TCF Capital Funding provided the senior debt financing, and Brookside Mezzanine Partners provided mezzanine debt financing and made an equity co-investment.
announces that it has received a proposal from an arms length third party (the New Financing Provider) to replace its senior lender and increase its available credit by CAD $19.5 million to an aggregate of CAD $36 million (the Debt Financing).
has announced it has closed USD 145 million in equity and debt financing with funds managed by Athyrium Capital Management, LP, a healthcare-focused investment firm, the company said.
M2 PHARMA-February 26, 2019-Urovant Sciences signs debt financing agreement with Hercules Capital
It has also secured debt financing from South African-based bank CFC Stanbic to meet the rising demand for last mile fleet connectivity.
New York: Fitch Ratings said gains made by El Salvador's main opposition ARENA party in legislative elections could result in an improved policymaking climate and easier passage of debt financing over the medium term.
With this latest announcement, Pawame also becomes one of the first energy startups in the Middle East to employ this new powerful way of debt financing.
CIT Group provided debt financing to acquire the property.
There are two primary forms of financing, debt financing and equity financing.
Intermap Technologies Corporation (TSX:IMP), (BB:ITMSF) said it has completed a non-brokered USD3.0 million debt financing with Vertex One Asset Management of Vancouver, BC.
TELECOMWORLDWIRE-July 15, 2015-Intermap Technologies gets USD3.0m bridge debt financing
Henderson, NV, May 18, 2015 --(PR.com)-- ServerHub, a privately held Infrastructure-as-a-Service (IaaS) provider that specializes in dedicated server and cloud based virtualization applications, along with Eonix Corporation, the parent company of ServerHub today announced that it has raised over $1.3 million dollars in debt-finance funding backed by various debt financing lenders.