Understanding Debt
Written by Mariyam Sara
1 min read | Updated on October 03, 2025, 18:14 IST
What is corporate debt?
Corporate bonds
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
When companies need additional capital to support their operation, it either raises this capital by issuing shares and corporate bonds or by obtaining long term loans.
In this blog, you will learn in-depth what corporate debt is, type of corporate debt and how it impacts stock prices.
What is corporate debt?
When a company needs capital but doesn’t want to dilute its controlling interest by issuing equity, it borrows funds from high networth individuals, the government, or the general public.
To meet its long and short-term monetary requirements, companies issue corporate bonds or obtain loans.
Corporate bonds
Corporate bonds are classified into two types
Short-term bonds
Short-term bonds have a maturity of 1-3 years, these bonds help companies meet their working capital requirement.
Long-term bonds
These bonds have a maturity of more than 10 years and help companies fulfil their long-term capital requirements.
About Author
Mariyam Sara
Sub-Editor
holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.
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