Bank debt generally refers to:

Bank debt specifically refers to the funds that a business borrows from financial institutions, such as banks. This can include various types of loans, such as term loans and lines of credit, as well as elements like overdrafts. These borrowings are classified as liabilities on the company’s balance sheet, meaning they must be repaid over time, often with interest. This type of financing is essential for businesses that need capital for operations, expansion, or cash flow management.

In contrast, equity financing from shareholders represents ownership stakes in the company and does not involve borrowing, while government grants are non-repayable funds awarded by governments to support specific projects or foster business development. Revenue generated through sales refers to the income a business earns from its operations, which is entirely different from debt obligations. Understanding these distinctions is vital for effective financial management and strategic planning in a business context.