List any three advantages of borrowed funds?

sourcesofb.f
cbse

#1

The advantages of borrowed funds are as follows:

  1. The interest paid on borrowed capital is a tax- deductible expense.
  2. Borrowed funds do not lead to the dilution of control as they do not provide voting rights.
  3. Borrowed funds provide flexibility in the capital structure of the company as they can be redeemed as and when required.