Debenture Bond (Noun)
Meaning
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company issued a debenture bond to secure a large loan from investors without immediately affecting cash flow.
- A debenture bond is essentially an unsecured loan allowing the borrower to delay payment on their financial obligations.
- To ensure future payment, suppliers began requiring a debenture bond for all new transactions with the newly-founded business.
- The store accepted a debenture bond in exchange for the electronic goods, trusting that payment will be made as agreed.
- Banks offer lower interest rates for secured debenture bonds, making them an attractive option for long-term credit.