Russel Gajate: If a (big) company wants to grow its business, it can sell shares of stock (equity financing) or it can borrow (debt financing). Either way it brings in cash to grow its business.
Arnulfo Seegars: When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid. Copied from Investopedia. Ways to Finance a Company's Growth (Video series title from Blueook Academy) explains Debt Financing pretty simply.
Jacques Vaquera: Debt financing is when a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal! and interest on the debt will be repaid. The other way of raising capital is to issue shares of stock in a public offering. This is called equity financing.
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