debt financing

The pros and cons of debt financing

In our last article, we discussed stock dilution which can be the result of a company raising more equity.  However, companies can also raise money through debt financing. In this article we discuss the pros and cons of debt financing. Pros of debt financing 1.Ownership. When companies choose debt to finance new projects, they are keeping the company ownership as is. However, when they raise equity instead, investors who buy an equity position of a company also obtain a part …

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