Omavahenditel

Omavahenditel is Estonian for funding or financing that comes from a company’s own resources, rather than from external borrowings. The word is the instrumental form of omavahend, meaning own funds. In financial and accounting language it is used to describe actions or situations that are financed with internal resources.

Omavahendid (own funds) consist of the owners’ equity in a company. They include elements such as share capital (aktsionäride või osanike omakapital) and reserves, as well as retained earnings and other internal accumulations that increase equity. In accounting terms, omavahendid are the difference between a company’s assets and its liabilities and represent the owners’ stake in the business.

In practice, omavahenditel rahastamine or financing with own funds means that investments, capital expenditure, or growth are funded from internal profits or capital rather than from loans or external financing. This type of funding affects solvency and leverage ratios and is often viewed as less risky from a lender’s perspective because it does not create fixed interest obligations.

Use and relevance vary by context. For banks and regulated financial institutions, maintaining sufficient own funds is a key part of capital adequacy requirements. For non-financial companies, a higher level of omavahendid can improve creditworthiness, support stability during downturns, and provide flexibility for strategic decisions.

Example: a company purchases new machinery using accumulated profits and additional owner contributions rather than taking a bank loan, i.e., financing it omavahenditel.