What are the typical terms of debt funding?
An example of an AI chatbot conversation about typical debt funding terms.
What are the typical terms of debt funding?
Typical terms of debt funding include interest rates, repayment schedules, and covenants. Would you like to know more about any specific term?
Yes, can you explain what covenants are?
Covenants are conditions set by lenders to protect their investment. They can be financial metrics or operational restrictions.
How do interest rates affect debt funding?
Interest rates determine the cost of borrowing. Higher rates increase repayment amounts, while lower rates make borrowing cheaper.
What is a repayment schedule?
A repayment schedule outlines when and how much the borrower must pay back, including principal and interest payments.
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