Debt Finance is a core financial strategy involving the use of borrowed funds to fuel business growth, distinguished by its ability to leverage capital without equity dilution. This category encompasses various instruments like bonds and loans, offering businesses flexibility and tax benefits. While it provides significant financial leverage, debt finance demands careful navigation of interest rates and repayment schedules. The rise of fintech is reshaping traditional paradigms, introducing innovative platforms and tools. Understanding its intricacies is vital for both economic strategists and aspiring entrepreneurs seeking growth.
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