The mechanisms for a public offer of a debt security are much the same as that of a public offer of equity. But a debt issue cannot be made unless credit rating from a credit rating agency is obtained and disclosed in the offer document. So rating agency's cost is in addition to cost of public issue
This is perhaps the cheapest source o obtaining long term finance, as generally the dealings between company and the financial institution providing the loan do not invite costs of the type involved in public issues. However, the company has to pay for professional for obtaining feasibility and other reports.
Financial planning is part of a larger planning system in the firm. The planning process begins with a statement of the firm's goal or mission, which is usually stated in qualitative terms. From the mission of the firm, the strategy is derived which defines the products or services the firm will produce and markets it will serve. To support the strategy, policies and budgets are developed in various areas such as research and development, production, marketing, personnel, and finance. A financial planning represents a blue print of what a firm purposes to do in future. Financial planning have generally the following elements: