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Debt Instrument

Debt Instrument

A debt instrument is a tool an entity can use to raise capital. It is a documented, binding obligation that provides funds to an entity in return for a promise from the entity to repay a lender or investor in accordance with the terms of a contract.1 Debt instrument contracts detail the provisions of the deal, including the collateral involved, rate of interest, schedule for interest payments, and time frame to maturity.

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