Definition of Debt Financing

Debt Financing refers to the provision of long term loans to small businesses in exchange for debt securities or a note.
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The lender does not receive an equity stake in the business. However, debt financing is often secured by business equity as a payment of last resort to the creditor.

Debt Financing References On This Site

These Gaebler.com articles mention this glossary term:

• Grant Writing Tips for Scientist Entrepreneurs - Whereas equity investors come with expectations of a return on investment and debt financing expects to be paid back in full with interest...
• Getting Money to Start a Business - As you look to raise money for a new business, be sure to contact all of these sources of debt financing, if that is what it takes. Start with friends...
• Financing a Startup Company - That's why the first place to look for debt financing is your own personal savings. If you don't...
• Determining the Proper Capital Structure for a Business - This is why it is important that a certain degree of debt financing exist in a business' capital structure...
• Subordinated Debt - From a lender's perspective, subordinated debt financing is an incredibly risky form of lending and thus...
• Basic Guide to Determining a Discount Rate - This could be through debt financing, venture investments or public offerings of equity. In any...
• Borrowing Money to Start a Business - Now that I've come to understand the power of debt financing (it all started with the $100,000 credit line...
• How Much Should I Borrow to Start a Business? - Think about it: If you knew that your company was going to be worth $100 million in the next five years, how much equity would you be prepared to give away to an investor? While debt financing certainly isn't the solution for every startup business...
• CIT Bailout - Given that there are 27 million small businesses in the United States, this means that 1 in 27 business owners gets their debt financing from CIT...
• Basic Terms of Real Estate Debt Financing - Here is a list and definitions of some of the most common terms you will see when using debt financing to purchase real estate. You should be familiar with...
• Senior Debt - From a lender's perspective, senior debt financing serves as the least risky form of secured lending...
• Business Identity Theft - The caller told us that the letter indicated we would fund their business with $20 million in debt financing! Yikes...
• Business Identity Theft - The caller told us that the letter indicated we would fund their business with $20 million in debt financing! Yikes...
• Determining the Proper Capital Structure for a Business - This is why it is important that a certain degree of debt financing exist in a business' capital structure...
• Senior Debt - From a lender's perspective, senior debt financing serves as the least risky form of secured lending...
• Subordinated Debt - From a lender's perspective, subordinated debt financing is an incredibly risky form of lending and thus...
• Basic Guide to Determining a Discount Rate - This could be through debt financing, venture investments or public offerings of equity. In any...
• Getting Money to Start a Business - As you look to raise money for a new business, be sure to contact all of these sources of debt financing, if that is what it takes. Start with friends...
• Borrowing Money to Start a Business - Now that I've come to understand the power of debt financing (it all started with the $100,000 credit line...
• How Much Should I Borrow to Start a Business? - Think about it: If you knew that your company was going to be worth $100 million in the next five years, how much equity would you be prepared to give away to an investor? While debt financing certainly isn't the solution for every startup business...
• Financing a Startup Company - That's why the first place to look for debt financing is your own personal savings. If you don't...
• CIT Bailout - Given that there are 27 million small businesses in the United States, this means that 1 in 27 business owners gets their debt financing from CIT...
• Basic Terms of Real Estate Debt Financing - Here is a list and definitions of some of the most common terms you will see when using debt financing to purchase real estate. You should be familiar with...
• Grant Writing Tips for Scientist Entrepreneurs - Whereas equity investors come with expectations of a return on investment and debt financing expects to be paid back in full with interest...