What is the major advantage of debt financing?

1. The major advantage of debt financing is that interest expense is deductible for income tax purposes, which lowers its overall cost. 2. There is also no loss of ownership, since creditors typically have no say in management unless the borrower defaults. 3. Dividends are not deductible, so the first option attaches a debt benefit to equity. 4. Debt has a stated maturity and requires repayment of principal by a specified date, so it certainly must be repaid. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.4 Raising Long-Term Financing_