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"This decline can be attributed to the lack of availability of debt finances and the fall in prices, which is taking its toll on developers.
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The choice of debt financing is largely affected by the accessibility of bank loans (Wu and Yue, 2009).
Higher interest rates increase the cost of debt financing.
Banks are like the supermarket of debt financing.
They find that the deduction restrictions often, but not always reduce the benefit of debt financing.
In this paper, a quantitative research is conducted to disclose the robustness of debt financing system and its strategy.
Indeed, access of debt financing is very limited especially for SMEs due to the requirements for the provision of debt (Deakins, 2008).
Nevertheless, the choice between the two main sources of short-term financing (bank debt and accounts payable) may be determined by the existence of financial constraints in other sources of debt financing, as suggested by the previous descriptive analyses.
To combat the excessive use of debt financing, many countries recently introduced new interest deductibility restrictions (see e.g., Webber 2010).
Founded by Wade Eyerly, Surf Air has attracted $17.3 million of equity and $65 million worth of debt financing.
The role of debt financing and the need to attract foreign capital in non-debt forms are crucial in the context of emerging markets.
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