Question

The major advantage of debt financing is the: Group of answer choices number of different sources from which it is available amortization benefits absence of factoring deductibility of interest expenses lack of dependence on collateral

Answer 1

The major advantage of debt financing is the number of different sources from which it is available amortization benefits.

It is referred to as debt financing when a business takes out a loan that will be repaid with interest at a later time. A secured or unsecured loan could be used to finance it. To finance operating capital or an acquisition, a company will take out a loan.

A party, the debtor, is obligated by a debt to pay another person, the creditor, money or another agreed-upon value. In contrast to an immediate purchase, debt involves deferred payments or a series of payments.

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