Debt financing allows businesses to raise capital by borrowing money that must be repaid over time with interest, using tools like loans, bonds, or lines of credit. It offers benefits such as tax-deductible interest and full ownership retention, but also presents risks like cash flow strain and potential default. Choosing between debt and equity financing depends on factors like cash flow, creditworthiness, and growth goals, and businesses must weigh the trade-offs to make informed financial decisions. Read more about the pros and cons of debt financing in this PNC post.