Would it be wise for a young company that is growing quickly but still hasn’t achieved profitability to attempt to issue bonds as a way to expand its working capital?

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asked Nov 23, 2021 152k views

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Naraen · Answer 1 · 2021-11-28T16:20:40+0000

Answer:

It would not be wise for the young company to attempt to issue a bond as a way of expanding its capital. This is because, the company still has to be able to find a balance between its expenditure and income before it can think towards expansion. If this is not met, they might run into series of financial debts while trying to expand.

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Would it be wise for a young company that is growing quickly but still hasn’t achieved profitability to attempt to issue bonds as a way to expand its working capital?

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