Featured:
Allergies
Grilling Guide
eHow Now Blog

Definition of a Funded Debt

Definition of a Funded Debt thumbnail
Debt

Companies have debt from a variety of different types of loans and obligations. This money is used to cover operating expenses or to fund expansion. Funded debt is one category of corporate debt.

  1. Time Frame

    • Funded debt is any type of corporate debt that will mature over more than one year or business cycle. A debt is mature when the company pays off the principal. Funded debts are thus a long-term form of debt.

    Function

    • Long-term debt usually funds capital expansion projects. These can include new factories, plants or the expansion of existing facilities.

    Types

    • Funded debts include bonds or note payables, provided they are due at least a year after issue. Being "funded" refers to the interest the company pays on the debt while it is outstanding.

Related Searches:

References

  • Photo Credit debt defined image by Christopher Walker from Fotolia.com

Comments

You May Also Like

  • Definition of Debt Pushdown

    "Debt pushdown" is a financial term, referring to an accepted accounting method which shifts debt from a parent company's accounts to those...

  • Define Debt Funding

    Corporations finance themselves through either taking on debt or issuing shares to investors. Although debt is generally associated with increased risk, access...

  • Debt Vs. Equity Funding

    When you start a business, most of the time you will need to generate capital to run it. When trying to come...

  • The Definition of Debt Finance

    Debt financing helps a variety of organizations finance short-term operating needs, long-term investments, major expansion projects, and mergers or acquisitions. Debt ...

  • Definition of External Debt

    External debt is the component of a country's overall debt that is owned by creditors outside of the country. External debt can...

  • What Does Mezzanine Debt Mean?

    Mezzanine debt refers to a form of liability financing used by businesses to fund projects and operations. Mezzanine debt is generally a...

  • Pros & Cons of Debt Consolidation Companies

    Pros & Cons of Debt Consolidation Companies. Going through a debt consolidation company can help many dealing with debt and for those...

  • What Is the Meaning of External Debt?

    External debt is the money owed by a nation to creditors outside its borders. This differs from internal debt, which is owed...

Related Ads

thumbnail
Featured