1. Financial Advisory
2. Finance
3. Corporate Finance
4. Long Term Financing

What is Long Term Financing?

Long term financing is used by corporation for projects that have an indefinite or very long ending date. The most common reason for long term debt is to expand into new markets through acquisitions or by adding equipment, properties or employees necessary to expand. Since there is no necessary ending date for expansion, corporations want the debt to match this time frame and will often try to place debt for 20 years or more at a fixed rate. The rate, of course, will be higher than their short or medium term borrowing.