Pääomakantana

Pääomakantana, which translates to "capital loan" or "equity loan" in English, refers to a type of financing where a company receives funds in exchange for a stake in its ownership or a promise of future repayment tied to its capital. This differs from traditional debt financing, which primarily involves repaying a principal amount with interest.

In a pääomakantana arrangement, the provider of capital, often an investor or a specialized financial institution, takes on a degree of risk associated with the company's performance. The terms of the agreement can vary significantly. They might include provisions for profit sharing, a repayment schedule that is contingent on the company's profitability or revenue growth, or a right to convert the loan into equity under certain conditions.

This form of financing is particularly relevant for startups and growing businesses that may not yet have the collateral or credit history required for conventional bank loans. It allows them to access capital while potentially preserving more operational control than is typical with venture capital. The underlying principle is that the provider of capital is betting on the company's future success and is compensated accordingly, either through capital appreciation or a share of future earnings. The specific structure of a pääomakantana needs careful negotiation to align the interests of both the company and the capital provider.