According to the classic growth paradigm, all companies go through various phases. The time ultimately comes when shareholders’ equity is insufficient to drive business needs. At this point, a company faces the challenge of raising and financing borrowed capital.
Debt financing may arise in conjunction with the need:
Debt financing may arise in conjunction with the need:
- to implement investment projects;
- to diversify the resource base;
- to create a public credit history;
- to acquire core assets;
- to refinance the loan portfolio;
- to regulate relations with creditors.


