Debt financing is one of the financing methods of modern enterprises, and it has brought many positive effects to enterprises, such as debt interest reducing the financial cost of enterprises and lowering the cost of capital. The premise for enterprises to enjoy the various advantages brought by debt financing is to realize them on the basis of reasonable debt. If the company does not finance according to its own conditions, it is easy to lead to over-financing, worsening the company's operating environment, and unable to repay the interest and principal of the debts that are due. Therefore, companies should specifically analyze the causes and control methods of debt financing.
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