What does funding debt mean?

Funding debt refers to the practice of borrowing money to finance a company's operations or investments. This debt is typically raised through loans or the issuance of bonds, with the expectation that the generated returns will exceed the cost of borrowing. It allows businesses to access capital for growth or to manage cash flow without diluting ownership through equity financing. However, it also imposes repayment obligations and interest costs, which can impact a company's financial health.