This paper studies the impact of external financing on firms' incentives to invest in a general borrowing-then-investment oligopoly game. Firms optimally choose to finance their investment by mean of a standard debt contract. When the strategic-commitment effect of debt is non-negative, firms borrow sufficient funds to avoid being cash constrained in the investment sub-game. Conversely, when the strategic-commitment effect of debt is negative, firms borrow an amount that leaves them cash constrained during the investment sub-game. Consequently, being cash constrained in the investment stage is an strategic choice. In this case, policies aimed at alleviating firms' access to external funds would not lead to increased investments.