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Benefits of Debentures

Check out Benefits of Debentures discussed below. So let us find out some information on benefits to know more about debentures. Also check out Advantages and disadvantages of debentures for more details

Debentures Benefits :

Debentures helps to provide long term funds to the companies.

The rate of interest which is payable on debentures is generally lesser than the rate of interest which is being payabe on shares.

Debenture holder do not have any voting rights hence debt financing does not result into dilution of control.

Debentures are less costly and no ownership dilution.

Debentures can be easily redeemed when the company has surplus funds.

Debentures can be considered as a safe investment and fixed source of investment.

Debentures has definite maturity period.

Debentures helps companies to raise funds for a specific period of time.

Debentures also enables the company to trade on equity.