However, borrowing money as a corporation can be well beyond a simple matter, since banks will scrutinize books and assets very carefully before making a lending decision. It is sometimes simply easier to issue bonds than to try to go through a traditional lending process.
Debt financing versus equity financing
Along with debt financing, many companies also use equity financing to help cover big expenses. The two are not the same and, in fact, are almost polar opposites. Unlike debt financing, equity financing has no repayment obligation, but the company has to give little parts of itself away to others, often in the form of shares.
With debt financing, a company remains whole and can control its own destiny. With equity financing, other owners are brought into the mix. This can severely alter the trajectory of a business, depending on the amount of equity financing.