A firm's ability to attract debt financing depends first and foremost on:

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A firm's ability to attract debt financing depends primarily on its ability to generate cash flows in the future. Lenders want to ensure that they will receive regular interest payments and that the loan will be repaid on time. Therefore, projections of future cash flow are crucial in attracting debt financing. Factors such as reputation, customer satisfaction, and brand equity may also have some influence, but the ability to generate future cash flow is paramount.

A Firm's Ability to Attract Debt Financing Depends First and Foremost