Debt financing: Obtaining capital by using credit

Debt financing is a type of external financing by which a company acquires capital using credit.

With debt financing, capital is loaned to the business in the form of bank or supplier credit, loans and mortgages. Financing through the issuance of bonds is, for the most part, only possible for large public limited companies or cooperatives, which are also called bond-issuing companies.


Last modification 05.05.2021

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