MANAGEMENT

Detailed explanation-1: -Debt financing occurs when a company raises money by selling debt instruments to investors. Debt financing is the opposite of equity financing, which entails issuing stock to raise money. Debt financing occurs when a firm sells fixed income products, such as bonds, bills, or notes.

Detailed explanation-2: -Debt financing is when businesses raise funds by selling debt in their business (e.g. bonds, notes). Whatever the instrument, if a business raises capital through equity or debt, they are likely issuing a security.

Detailed explanation-3: -Definition: When a company borrows money to be paid back at a future date with interest it is known as debt financing. It could be in the form of a secured as well as an unsecured loan. A firm takes up a loan to either finance a working capital or an acquisition.