What will happen to the company's long-term debt? Long-term liabilities have characteristics. Long-term liabilities refer to debts whose repayment period exceeds 10 years or 10 economic cycles. Long-term liabilities include long-term loans, bonds payable and long-term payables. It takes a lot of money to organize an enterprise or expand its business scale. Generally speaking, these funds need to raise long-term liabilities by borrowing long-term debts or increasing capital. Compared with increasing capital, the advantages of borrowing long-term debt are as follows: first, borrowing long-term debt can provide "financial leverage effect" for enterprises, which makes it possible to improve the net income of enterprises, because if the return on investment obtained by enterprises during debt operation is higher than the interest rate of long-term liabilities, the excess part of long-term liabilities will be owned by enterprises; Second, borrowing long-term debt will not affect the ownership structure of the enterprise and will not disperse the control right of the enterprise, because the creditors of the enterprise do not own the ownership of the net assets of the enterprise.
Generally speaking, there is no right to interfere in the business activities of enterprises. Therefore, borrowing long-term debt does not affect the capital of the enterprise, and long-term debt does not affect all the rights of enterprise investors; Third, borrowing long-term debt has the function of "interest tax deduction", that is, interest expenditure can be used as a deduction before enterprise income tax, thus reducing the actual interest burden of enterprises.