Yasumasa Kikuchi: What is Debt Financing for Businesses?

Offering over 25 years of expertise in the financial services

industry on Wall Street and worldwide, Yasumasa Kikuchi today
works as president and chief executive of Pacific Rim Partners.
Leveraging his investor relations in New York, Philadelphia, and
Tokyo, Kikuchi excels at helping clients raise capital for corporate
endeavors, large and small, often through debt financing
strategies.

Debt financing is a procedure by which a company may quickly
raise capital for its day-to-day business operations. The most
common type of debt financing is for a company to issue bonds to
the lenders, who are typically individual or institutional investors
other than banks. For either short- or long-term, the company will
receive a loan and the lendersthe creditorswill be repaid the
principal and interest in installments. Debt financing routinely
incurs higher interest rates than a traditional bank loan, but the
principal and interest are tax-deductible since they are classified
as business expenses.