Abstract: This paper builds a dynamic model of corporate financing where financial slack arises from bargaining. When financiers with bargaining power extract rent from cash-strapped firms, firms—despite the absence of fixed transaction costs or search frictions—finance in lumps to bargain infrequently, and also typically before exhausting internal funds to strengthen outside option. Continuation value directly amplifies rent, rationalizing large cash-holdings by ‘growth’ firms. Firms with robust financing access maintain internal funding capacities that substantially exceed their investment needs, whereas firms relying on concentrated financiers may externally finance investment despite having sufficient funds yet forgo investment with even more funds.