When a company wants to raise money through debt, one option is to issue a debenture. A debenture is a type of debt instrument that is not secured by collateral and typically has a longer term than other debt instruments. Debentures can be issued by companies, governments, or other entities. One reason why a company might choose to issue a debenture is that it can be easier to obtain financing than with other types of loans. Additionally, debentures typically have lower interest rates than other types of loans. Lastly, debentures can be a more flexible form of financing, which can be helpful for companies that have irregular cash flows.
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