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Company Law Methods of Borrowing by a Company

Company Law Methods of Borrowing by a Company | Long-Term | Short-Term

Borrowing
To run a company, money is required. Now, either can be in the form of Capital investment or it can be borrowed from the outsiders. Capital investment can be done by issuing equity shares and whereas money can be borrowed from outsiders’ i.e. external sources can be through issuing debentures, bonds, bank loans, External Commercial Borrowings, etc.
Borrowing basically implies arranging money with the intention of running a business and earns profits and finally returns the borrowed money.
Borrowing means to borrow money. Borrowing can be of many types like short-term borrowing, long-term borrowing, secured borrowing, unsecured borrowing, private borrowing, public borrowing, etc.
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