Debt financing occurs when a firm raises money for working capital or capital expenditures by issuing corporate bonds to raise debt financing. 

Firms use a mixture of debt and equity for raising the required funds to invest.

Debt financing  refers to the likelihood that a company will be unable to meet its debt obligations.

Debt financing negatively affects the value of a firm.

Dept financing refers to the use of a company's balance sheet assets, including short-term investments, inventory and accounts receivable, to borrow money or get a loan.