External financing

Debt financing refers to the procurement of money and physical capital to cover the financial needs of a business or household loans from creditors, banks or financial markets.

They are also called loan financing.

Debt financing can be further subdivided into

• Long-term credit financing
• Short-term credit financing and in
• Credit substitutes

Examples of debt or debt financing:

• Overdraft
• Bills discounted credit
• Lombard loans
• Mortgage
• Supplier credit
• Factoring credit
• Interest-bearing securities
• Promissory notes
• Akzeptkredit
• Bankaval
• Project Financing

• Financing