How to Succeed at Bank Financing

Abstract

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.

Citation

Taylor, L. (1989), "How to Succeed at Bank Financing", Journal of Business Strategy, Vol. 10 No. 2, pp. 58-61. https://doi.org/10.1108/eb039299