What aspect of debentures allows companies to raise money?

The aspect of debentures that allows companies to effectively raise money is the issuer's creditworthiness. When a company issues debentures, it is essentially borrowing money from investors with the promise to pay back the principal amount at a later date, along with interest payments. The perceived creditworthiness of the issuing company plays a crucial role in determining investor confidence.

If investors believe that the company is financially stable and has a good capacity to repay its debts, they are more likely to purchase the debentures, thus facilitating the company's ability to raise capital. High creditworthiness indicates lower risk, leading to potentially more favorable interest rates, making it easier for the company to secure necessary funds for operations, expansion, or other financial needs.

While backing of specific assets and flexible payment structures can provide additional confidence to investors, it is largely the overall trust in the issuer's ability to meet its financial obligations that is the primary driver behind investment in debentures. The maturity date is also important, but it does not directly influence the company's ability to raise funds as effectively as the issuer's creditworthiness.