is debt financing is usefull for IT companies



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is debt financing is usefull for IT companies

1 Answer(s)


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Advantages of debt financing for IT companies
a)Maintain ownership: The IT Company can maintain ownership under debt financing i.e run the business without the interference from outsiders.
b)Tax Deductions: Biggest advantage of debt financing.
c)Lower interest rate: For instance if the bank is charging the company 10% 0f their loan, and the government 30% , then there is an advantage of taking the loan that can be deducted.