Finance

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Title: Finance

Essay Details:

Subject: Business

Author: Bessie H

Date: November 9, 2014

Level: University

Grade: B

Length: 3 / 858

Essay text:

So it is just a simple loan of money with the intent to be paid back at a future date. The cost of borrowing the money or “debt financing” is paid in interest. The more equity that a company has, the better chances that the lender will charge a lower rate of interest. A new business will more then likely have a higher rate of return than a well established business. (Debt Financing, 2008) Some advantages of using debt financing is if you have a good credit history you can pay a lower interest rate to receive a loan. Companies that are in good standing, debt financing allows them to retain ownership and control of the company...

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