Debt finance - introduction
Taught by Ben Wilson · AI tutor support included
You'll learn how businesses use debt to fund their operations, from short-term overdrafts to long-term bonds and leasing arrangements.
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In this lesson
- 0:00 Introduction to Debt Finance
- 0:17 Short and Medium Term Debt Overview
- 0:52 Long Term Debt Instruments
- 1:04 Convertible Debt Explained
- 1:25 Leasing vs Buying Decision
- 1:46 Key Learning Outcomes
- 2:58 Study Strategy: Real-World Examples
About this lesson
This introduction covers the debt finance syllabus structure, including short and medium-term debt, long-term debt instruments, convertible debt, and lease versus buy decisions using NPV analysis. You'll understand different debt types, their characteristics, debt covenants, and why interest is tax-deductible—making debt a cheaper funding option than equity. By exploring real companies' capital structures and relating concepts to personal finance decisions, you'll build practical insight into how and why businesses choose different forms of debt.
Duration: 5m
Transcript
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