Debt Financing Explained

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Debt Financing

What is Debt Financing?

Debt financing involves borrowing money that must be repaid with interest at agreed terms.

Explanation

Common forms include:

Business loans
Credit lines
Equipment financing

Benefits:

Retain full ownership of the business
Flexible terms depending on creditworthiness

Practical Example of Debt Financing

A logistics company borrows £200,000 from a lender to purchase new vehicles and repays the loan over four years. Want to see how debt financing applies specifically to the logistics sector? Read our logistics business loan guide for a step-by-step overview.

How Bizcap Can Help:
Bizcap offers fast, flexible debt financing solutions up to £750K to help businesses access working capital without diluting ownership.

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