DFinance glossary

Debt

Quick definition

A sum of borrowed money to be repaid later.

Overview

Debt is a financial obligation to repay borrowed money, usually with interest, over a defined period.

Common Use Cases

  • Financing projects or expansion.
  • Managing cash flow.
  • Reducing the need for equity funding.
  • Negotiating better loan terms.

Examples in Small Businesses

  • Taking out a bank loan to buy equipment.
  • Using credit lines for working capital needs.
  • Restructuring debt to improve cash flow.
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