Debt Financing

Written By Melissa Cook
Feb 14, 2023
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Debt financing refers to the process of borrowing money to fund a company’s operations, growth, or investments. 

The borrower (i.e. the company) promises to repay the lender (e.g. a bank) with interest over a set period of time. Unlike equity financing, where the lender receives ownership in the company in exchange for funding, debt financing does not result in the lender having any ownership or control over the borrower.

There are several types of debt financing, including:

  1. Term loans: a lump sum loan that is repaid with interest over a fixed period of time.
  2. Lines of credit: a flexible source of financing that allows a company to borrow as needed, up to a set limit, and repay with interest only on the amount borrowed.
  3. Bonds: debt securities that are sold to investors and repaid with interest over a set period of time.

Debt financing is an attractive option for many companies because it provides a reliable source of funding without giving up ownership or control. Additionally, interest paid on debt is tax deductible, which can result in lower overall borrowing costs.

However, debt financing also has its downsides. Borrowing money means incurring debt, which can affect a company’s credit rating and borrowing capacity. Additionally, the obligation to repay the loan, with interest, means that a portion of the company’s profits must be dedicated to debt repayment, rather than being reinvested in the business.

For companies considering debt financing, it is important to carefully consider the terms and conditions of the loan, including the interest rate, repayment period, and any fees or penalties. It is also important to have a clear plan for how the borrowed funds will be used and how they will contribute to the long-term success of the company.

By carefully weighing the options and planning for the future, companies can make informed decisions about how best to finance their operations and achieve their goals. To learn more about debt and its impact on your finances, speak with an Americor professional today.


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About Americor

Americor provides debt solutions to thousands individuals and families all over the country. We’re a next-generation debt relief company with a proprietary platform designed to help clients get out of debt quickly. Together we’ll develop a strategy for you to enjoy a debt free lifestyle. Learn more about how Americor can help relieve the burdens of debt today.

18200 Von Karman Ave, 6th Floor Irvine, CA 92612
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We provide debt resolution services. Our clients who make all monthly program payments save approximately 40 – 50% of their enrolled debt (average of 43%) upon successful program completion, before program fees. Fees are based on a percentage of your enrolled debt at the time of starting the program and range from 15%-25% of your enrolled debt. Programs range from 20-48 months. Clients must save at least 25% of each debt due to an enrolled creditor before a bona fide settlement offer will be made. On average, clients receive their first settlement within 4-7 months of enrollment and approximately every 3-6 months thereafter from when the prior debt was settled. Not all Clients complete the program. Estimates are based on prior results and may not match your results. We cannot guarantee that your debts will be resolved for a specific amount or percentage or within a specific timeframe. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting, legal advice or credit repair services. Our program is not available in all states; fees may vary by state. Some programs may be offered through The Law Firm of Higbee & Associates d/b/a Advantage Law. The use of debt resolution services will likely adversely affect your credit. You may be subject to collections or lawsuits by creditors or collectors. Your outstanding debt may increase from the accrual of fees and interest. Any amount of debt forgiven by your creditors may be subject to income tax. Clients may withdraw from the program at any time without penalty and receive all funds from their dedicated account, other than funds earned by the company or fees paid to third-party service providers, as may be applicable. Read and understand all program materials prior to enrolling. Certain types of debts are not eligible for enrollment. Some creditors are not eligible for enrollment because they do not negotiate with debt relief companies. To determine the offers you may be eligible for, Americor conducts a “soft credit pull.” This credit pull does not impact your credit score, creditworthiness, or ability to obtain credit from other sources. The soft pull is not a tradeline entry, it does not report against your score and will only take a few minutes.

Americor Funding, LLC (18200 Von Karman Ave, 6th Floor Irvine, CA 92612) is fully accredited by the Better Business Bureau (BBB), the American Fair Credit Council (AFCC), and the International Association of Professional Debt Arbitrators (IAPDA). CA Department of Financial Protection and Innovation (DFPI) License # 603K913.

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