Long term Debt Finance consist of Debt or loan lasting over one year. Generally in the financial leveragecompany proffered long term debt because of the following reasons

Interest rate in the long term debt is lower comparative to the short term

Long term debt take many years to pay off, So company uses liquidity for the long term

Long-term debt financing usually has some financial benefits relative to short-term debt

Company can keep the control in the ownership by opting long term debt. If you go for equity financingYou relinquish some ownership, and usually some control. With long-term debt, the bank doesn’t get involved in your business.