Debt financing includes bank loans, issuing bonds and notes payable, accounts payable, etc. The latter mainly refers to stock financing. Debt financing constitutes a liability, and the enterprise itself must repay the agreed principal and interest on time. Creditors generally do not participate in the business decision-making of enterprises and have no decision-making power over the use of funds.
Debt financing can be divided into working capital financing and capital expenditure financing. Its advantage is to borrow funds and repay them to creditors at an appropriate time when it has repayment ability. There are many main channels for debt financing, such as friends, banks and other financial institutions. Current capital liability financing. These two ways are two more reliable ways of enterprise financing.
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