What Is Debenture Loans?


Debentures (or loan stock) exist as an alternative form of investing in a company that is more secure than investing in shares because interest payments must be made by the company and must be paid before dividends. Dividends, in contrast to debentures, are paid at the company's discretion.
Q&A Related to "What Is Debenture Loans"
This is the type of loan which could be converted later into goods or stocks. This permits the company who takes the loan to pay less interest rest then if it was without this option
A debenture is an unsecured loan that you give to a corporation. Because the company secures the loan with property, income or equipment that guarantees the repayment of principal
At some point in life you'll likely have to borrow money to pay for college, buy a home or car, renovate your home, consolidate debt or refinance existing loans at a lower interest
debenture: the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future; a certificate or voucher acknowledging
1 Additional Answer
Debenture loans are long term loans, usually taken by companies where they agree to pay at a specified future date. The loan is repaid in a fixed rate of interest to the debenture holder annually until maturity. Should the company fail to pay either the interest or principal amount at maturity of the loan; the debenture holders can force the company into liquidation to pay the amount due.
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