Features of both debt and equity financing are found in "subordinate financing".

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Subordinate financing involves an agreement where a lender provides a loan that ranks behind the primary creditors in terms of priority claim to assets and payment in the event of default. This subordinated debt has certain features of both debt and equity financing. It is similar to debt financing because it requires regular payments of interest and principal, but like equity financing, it has lower priority and is typically riskier than senior debt.

Features of Both Debt and Equity Financing Are Found in "Subordinate