Debentures

• What are debentures

  Long term agreements between a business and lender to repay a specified amount by a certain date
• Advantages of debentures?

  Control over decision-making is retained within the business

  Interest is fixed which helps budgeting
• drawbacks of debentures

  Interest is often higher than for other types of loan

  Failure to repay debentures may deter investors in the future