Financing Business with Debt?

Question

Is there any way to structure a debt investment so that the interest expense is not paid currently, but accrues over time and paid out at the end of a period (let's say 5 or 7 years). If this is possible, would the interest expense be tax-deductible annually and would the interest income (for the loaner) be taxed annually, or just at the end?

Answer 1

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