A duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or lender.
Use of debt in an organization's financial structure creates financial leverage that can multiply yield on investment provided returns generated by debt exceed its cost. Because the interest paid on debt can be written off as an expense, debt is normally the cheapest type of long-term financing.
Use debt in a sentence
- SBA Business Loans for Funding Your New Start up Business
- Why Does a Company Decide to Go Public?
- Preparation Needed for Selling a Business
- Guide to Developing Your First Corporate Governance Policies
- Government Aide for Minority Small Business Owners
- How Credit Scores Work: How a Score is Calculated