Respuesta :

Answer:

its like when a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay principal and interest on the debt.

Explanation:

this is kinda wordy but ya thats kinda it.

Baraq

Debt Funding is another term for debt financing. It is a method in which business owners gather capital through borrowing to finance a business operation.

Debt funding usually takes the typical loan arrangement that will be repaid with interest as defined by the debt funding deals.

There are various types of debt funding. Some of them include the following:

Non-Bank Cash Flow Lending;

Recurring Revenue Lending;

Loans From Financial Institutions;

Loan From a Friend or Family Member;

Peer-to-Peer Lending;

Home Equity Loans & Lines of Credit;

Credit Cards;

Bonds, etc.

Hence, in this case, it is concluded that Debt Funding is a means of financing business operations by business owners.

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