Advantages of Redeemable Debentures

  1. Flexibility in capital Structure – By issuing such debentures the company can make its capital structure more flexible, and raise funds as and when it needs the loan money.
  2. Check on Over capitalization – An over capitalized company may redeem such debentures and may control the state of over capitalization.
  3. Best solution for Fixed Term Loan – If a company requires funds for  a fixed period it may issue such debentures because these can be redeemed after a certain specified period.
  4. Preferred by Fixed Term Investors – These debentures are preferred by those investors who with to invest their funds for  a fixed term at a fixed rate of interest and at minimum risk.
Advantages of Redeemable Debentures by

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