The advantage of debt financing is you do not have to answer to investors. Terms, you may be able to negotiate fixed interest rates and flexible repayment options. Tax deductions, unlike private loans, interest, fees and charges on a business loan are tax deductible
Disadvantageofdebtfinancing:
A disadvantage of debt financing is that creditors often impose covenants on the borrower. A factor is a restriction lenders impose on borrowers as a condition of providing long-term debt financing
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Answer:
Advantage of debt financing:
The advantage of debt financing is you do not have to answer to investors. Terms, you may be able to negotiate fixed interest rates and flexible repayment options. Tax deductions, unlike private loans, interest, fees and charges on a business loan are tax deductible
Disadvantage of debt financing:
A disadvantage of debt financing is that creditors often impose covenants on the borrower. A factor is a restriction lenders impose on borrowers as a condition of providing long-term debt financing
Explanation:
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