Corporate debt refers to the money that a company borrows to finance its operations, investments, or expansion. This debt can take various forms, such as bonds, loans, or credit lines. Companies often use corporate debt to leverage their growth, allowing them to invest in new projects without using all their available cash. When a company issues debt, it typically agrees to pay back the borrowed amount, known as the principal, along with interest over a specified period. Managing corporate debt is crucial, as excessive debt can lead to financial difficulties, impacting the company's ability to operate and meet its obligations to investors and creditors.