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

What is long-term debt?

Long-term debt is any liability that is due in over one year. Short-term debt is any liability that is due in less than one year.Types of Business FinancingA business usually finances in two ways--... 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 »

What is a long-term debt ratio?

The long-term debt ratio, is a financial ratio that quickly notes the amount of long-term debt related to the amount of cash on hand, including preferred and common stock. A higher long-term debt r... Read More »

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 »