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Corporate Debt

Definition

Corporate debt refers to money borrowed by companies from external sources, typically with a promise of repayment plus interest. This financial obligation can take various forms, including bonds, loans, and credit lines, which companies use to fund operations, expansion, or acquisitions. It represents a liability on a company’s balance sheet, requiring scheduled payments that impact cash flow and profitability. Managing corporate debt effectively is crucial for maintaining financial health and investor confidence in traditional and digital asset markets.