You can take the form of short-term or long-term loans, you can choose sovereign bonds issued by the government, or you can choose corporate bonds issued by enterprises to meet the various financial needs of enterprises and provide financing facilities for enterprises.
Generally speaking, enterprises can obtain financing from banks or financial institutions by borrowing. This kind of loan is time-limited, generally calculated on a quarterly, semi-annual or one-year basis, and the borrower also needs to repay the borrowed money on schedule.
In addition, enterprises can also raise funds by issuing bonds, which can get more funds from investors than ordinary loans, and the term of bonds is longer than ordinary loans, so it can provide enterprises with more financing space.
Advantages of borrowing
1. Flexibility of raising funds: Borrowing can help enterprises, governments and individuals to raise funds quickly, meet their capital needs and make the operation of funds more flexible.
2. Reduce the cost of capital: the loan interest rate is lower than the cost of equity financing, which reduces the cost of capital and promotes the development of enterprises.
3. Improve the debtor's credit: Borrowing can help the debtor establish a good credit record, improve its credit, and enable it to obtain more financing channels.
4. Enhance the debtor's control: Compared with equity financing, borrowing can help the debtor to better control the company's control and maintain operational autonomy.
5. controllable investment risk: investors can invest by buying bonds, and the risk is controllable.