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debentures

This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.

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November 7, 2021 at 9:15 am #640133
johnbriane
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debentures are also a form of long term loan, provided that a collateral asset is provided to the respective finance provider.
is this correct sir?
November 7, 2021 at 3:14 pm #640168
John Moffat
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They are a long term loan. There is often collateral but there certainly doesn’t have to be.
November 8, 2021 at 1:26 am #640194
johnbriane
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Sir for which type of organizations is debentures suitable
Like what should the environment of the corporate be like in order to enjoy the benefits of debentures
November 8, 2021 at 7:37 am #640208
John Moffat
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All businesses needing to raise more finance will consider using debt finance – it is irrelevant as to the type of business or the environment of the corporate.
In theory, as I explain in my lectures, all businesses should raise as much debt finance as possible.
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