Debt financing is sometimes preferred by the corporate due to the fact that:

Interest on debt is considered a business expense and is tax-deductible under the Income Tax Act in most jurisdictions, including many countries that follow the principles of taxation. This means that the interest paid on debt reduces the taxable income of the company, resulting in lower tax liability. By utilizing debt financing, companies can benefit from the tax deductibility of interest expenses, which can lead to potential tax savings and improve the company's overall financial position.