How to Succeed at Bank Financing Available to Purchase

When there's a good match between the funds you need and the assets you have available for security, debt financing offers an attractive source of capital. Compared with a stock issue, bank borrowing has lower transactional costs, provides tax deductions for interest, and does not dilute your ownership. Yet there is a down side. With these benefits comes the high cost of restrictive covenants and of protecting the bank's collateral.