A company can finance its business with equity, debt and/or cash flows from its business activities.


Debt gives the company an obligation to pay interest and repay the borrowed amount at a future date. If a company goes bankrupt, the company has to repay its loans (if possible) before the shareholders get any money.


Debt is benficial since it does not cause any dilution, but on the other hand, taking on debt increases the riskiness of the shares in the company since the repayment of loans have priority over dividends.


The loans of a company are specified in the balance sheet in the annual report. To look into the loans of companies on the platform, you can download the annual report in each company's Deal Room.