Advantages of debt financing for IT companies
Dec 25 2013 11:59 AM
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.