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View Full Interview. The Legislative Branch is the only part of the government that can  authorize the borrowing of money. The Executive Branch can request  the money be borrowed but cannot authâ¦orize it. Avid political scientist with a strong focus on US History, including the political & military aspects of the US Civil War.
By Rob Renaud AAA |. A: Companies issue bonds to finance operations. Most companies can borrow from banks, but view direct borrowing from a bank as more restrictive and expensive than selling debt on the open market through a bond issue.The costs involved in borrowing money directly from a bank are prohibitive to a number of companies.In the world of corporate finance, many chief financial officers (CFOs) view banks as lenders of last resort because of the restrictive debt covenants that banks place on direct corporate loans.s a result, companies are more likely to finance operations by issuing bonds than by borrowing from a bank. For more further reading, see Debt Reckoning and Corporate Bonds: An Introduction To Credit Risk. For more about bonds, see Bond Basics Tutorial and Advanced Bond Concepts.