The Nature of Debt Finance and the Factors to Consider when Choosing the Source of Debt Finance

Abstract

Debt finance is part of the capital structure of an entity that is used to finance its assets. Being an essential part of an entity’s financial structure it has been deemed necessary to discuss the nature of debt finance and the factors to consider when choosing the source of debt finance in this paper. Therefore the title of this article is “The nature of debt finance and the factors to consider when choosing the source of debt finance”.

The details in this article are entirely collected through secondary research due to the specialised nature of the article. Information is specifically obtained from scholarly articles in accounting and finance, various text books in accounting and finance and journals from professional bodies such as ACCA, CIMA, ZICA and AAT.