Loans get issued based on profit generation (or asset value), so no, it is not “to keep them afloat”. You can’t get a loan if your company is not doing well or too risky (that’s why startups raise equity - because they are still too risky for someone to lend them money).
A loan is a form of debt, which is one of the two main forms of capital - the other main one being equity. Debt is less expensive than equity, so companies prefer to issue to raise capital via debt than equity.
A loan is a form of debt, which is one of the two main forms of capital - the other main one being equity. Debt is less expensive than equity, so companies prefer to issue to raise capital via debt than equity.