Debt Financing: Types, Advantages and Disadvantages for Corporate Financial Management - Desklib

PGBM 142 Corporate financial
management

Table of content
Introduction
Overview of case
Debt financing
Types of debt financing
Conclusion
References

INTRODUCTION
A solid financial system is needed for a company's survival and growth. Big companies
evaluating investment to operate their day-to-day operations as well as to grow their
company. In opportunity to expand and thrive, the company requires a huge volume of
cash with an extended transaction period.

Overview of case study
The company RR Ltd. is based in the United Kingdom. It involved in the manufacturing of
clothing and accessories. The company's senior management is considering building a
subsidiary manufacturing plant in the town of Manzanillo in goal is to expand its
operations in neighbouring countries. The shops are due to be finished in 20 months, with
revenue starting at the end of the first year of business. The company is looking for
external income streams and is evaluating two options: loan financing and stock capital.