Refinancing is done to lower interest costs, extend maturities, reduce currency risk or escape restrictive contract terms. Financing alternatives need to be assessed together with a cash flow projection.
Related terms
LeverageThe extent to which a company uses debt to finance its assets or investments.Debt instrumentBonds, bills and similar capital market instruments through which the issuer undertakes to pay investors principal and interest at a set maturity.Financial restructuringRescheduling a financially distressed company's debts in terms of maturity, interest or amount by agreement with creditors.Completion accountsFinancial statements prepared as at the closing date of an acquisition, through which the final price is set by net debt and working capital adjustments.Cost of capitalThe minimum rate of return investors expect from an investment in return for the risk they take.Discounted cash flow (DCF)A valuation method based on discounting the free cash flows an asset or company will generate in the future to the present using an appropriate discount rate.
Last updated: October 22, 2026 · This definition is for general information only.