Why does a company use long-term debt?

Answer A company commonly uses long-term debt to finance major capital purchases and investments. Like individual consumers, companies may be able to finance major purchases now and use future earnings to... Read More »

Top Q&A For: Why does a company use long-term debt

How to Refinance Long-Term Debt?

Refinancing any debt will likely incur some fees and costs. Finance companies, banks, credit unions and loan brokers make their income through these fees as well as the interest charged on the loan... Read More »

Amortization of Long-Term Debt?

Long-term debt must always be amortized, but the methods and reasons can differ. For instance, businesses that have long-term debt--the borrower--often amortize their loans out as part of their acc... Read More »

Characteristics of Long-Term Debt?

A business can have different types of debt, but not all debt is created equal. Unsecured debt refers to debt that is not linked to a physical asset. A good example of unsecured debt is a credit ca... Read More »

Classification of Long-Term Debt?

A company's senior management ensures that corporate liquidity levels are adequate to fund operating activities. Top leadership also makes sure the firm's balance sheet reflects an accurate classif... Read More »