Debt Financing

Debt financing is when a person or organization borrows money with the promise to pay it back later, usually with interest. This can come from banks, bond sales, or private loans. It's a common way to raise funds for business investments, buying property, or covering expenses. The borrower must repay the amount borrowed over time, often in fixed installments, which can be a manageable way to access capital without giving up ownership. However, it requires careful planning, as failing to repay can lead to financial difficulties or loss of assets.