What is non vesting debt?

Non-vesting debt refers to types of debt that do not convert into equity or ownership stakes in a company. It typically includes loans, bonds, or other forms of borrowing where the lender does not gain any ownership rights in the borrower’s assets or business. Instead, the borrower is required to repay the principal amount along with interest over a specified period. This form of debt is common in traditional financing arrangements, allowing companies to raise capital while maintaining full ownership.