why would a company want debt financing 
with debt either via loan or a bond the company has to make interest payments to creditors and ultimately return the balance of the loan however the company does not give up any ownership control to those lenders moreover debt financing is often cheaper due to a lower interest rate since the creditors can claim the firm s assets if it defaults interest payments of debts are also often tax deductible for the company the bottom linemany businesses eventually need greater spending power in order to grow and financing is the most common method of attaining it there are pros and cons to both debt and equity financing and each company should carefully weigh the costs of each before making a decision 