# Debt Financing Practice

**IRI:** https://folio.openlegalstandard.org/R8nycgMSnQGSzh9LvnqnhQ7

## Labels

**Alternative Labels:**

- Debt Financing
- FINDBT

**Translations:**

- de-de: Schuldenfinanzierungspraxis
- en-gb: Debt Financing Practice
- es-es: Práctica de financiación de deuda
- es-mx: Práctica de financiamiento de deuda
- fr-fr: Pratique de financement par la dette
- he-il: מעשה מימון חוב
- hi-in: ऋण वित्त प्रथा
- ja-jp: 債務ファイナンスの実践
- pt-br: Prática de financiamento por dívida
- zh-cn: 债务融资实践

**Hidden Label:** FINDBT

## Definition

Debt financing occurs when a firm raises money for working capital or capital expenditures by selling debt instruments to individuals and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.

## Sub Class Of

- https://folio.openlegalstandard.org/RZGfmXsIBYoRaOo5gXdeTP

## Parent Class Of

- https://folio.openlegalstandard.org/RCbpWCUBiQfGhlfwBD1yHhw

## See Also

- https://folio.openlegalstandard.org/RIx4wseXHDgt3SLWCIjNhd

**Deprecated:** False

**Identifier:** T-FIN-FINDBT