Corporate Debt

Corporate debt can take various forms, including bank loans, bonds, and other debt securities. Debt financing vs. equity financing: Unlike equity financing (issuance of stock), debt financing does not dilute ownership but requires the company to repay the borrowed funds with interest. Corporate debt can also be structured as revolving credit, in which a company iteratively borrows and repays cash over a period – in effect, a corporate credit card. This debt is typically held by groups or syndicates of commercial banks and is short-term in nature (from one to four years).