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Risk mitigation. Financing operations in good times allows me to run my company in a downturn with cash on hand when lending tightens up. Financing paying shar
by dlp211 7y ago
Risk mitigation. Financing operations in good times allows me to run my company in a downturn with cash on hand when lending tightens up.
Financing paying shareholders is the opposite of this.
- kgwgk 7y agoThat doesn’t answer the question. Why debt and not equity? Both can be used to raise cash.