The fund that is reserved to pay for the principal and interest payments on various debts is known as debt service fund. It is kept to reduce risk of debt security for the investors. The risk reduction of a debt security makes it attractive for the investors and also reduces the effective interest rate which is needed while selling the offering.<em> But a portion of the cash that a debt issuer receives from the debt offering is tied and it cannot be utilised for more useful investments.</em>
The channel of distribution consists of Marketing intermediates , who provide transportation and storage of goods as they are distributed from producers to ultimate consumers.
