Quora Answer: Can a Small Company Issue Bonds?

The following is my answer to a Quora question: “Can a small company issue bonds?”

A small company could conceivably issues bonds, and there is nothing stopping it.  The issue here is whether those bonds would have any rating?  They are more likely to be junk status, and there is unlikely to be much demand for those bonds.  Since the intent is to raise funds, it would be more likely that the company arranges financing through the sale of an equity stake or from a loan.