debt financing has more disadvantages. Above all

the bank takes charge on the company’s assets such as on company’s inventory or trade debts and pledged them as security and can hold the right to recover the amount by selling such assets. Such encumbrances can also make it possible for the bank to intervene over the operational matters of the company casting significant control over its policy matters. Moreover

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply