business






 

Question by  altdrumz (40)

What is a "funded debt" with regard to a large business?

 
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Answer by  afoschin (23)

Funded debt in a large business is another way of saying long-term debt. When raising funds for a multi-year project, one could use funded debt.

 
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Answer by  InquiringAli (89)

Usually a one year debt (varies) like bonds, payables (etc.,) that are funded by interest payments made by the company that borrowed the money over the term of the loan.

 
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Answer by  MathWiz (1408)

Funded debt, also called long-term debt, is when a company has used bonds or long-term notes to fund their company. Any debt that will mature in one year or more is considered funded. The cons with funded debt are higher interest rates and refinancing risk. Pros are more flexibility in financing options.

 
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