Võlakapitalit

Võlakapitalit, also known as debt capital, refers to funds raised by a company or government through borrowing. This typically involves issuing debt instruments such as bonds, loans, or mortgages. Unlike equity capital, which represents ownership in a company, debt capital creates a creditor-debtor relationship. The borrower is obligated to repay the principal amount borrowed, along with interest, by a specified maturity date.

The issuance of võlakapitalit can serve various purposes, including financing business expansion, acquiring assets, managing cash flow, or refinancing existing debt. Companies often turn to debt markets when they need significant capital without diluting ownership. Governments utilize debt for public projects, infrastructure development, or to cover budget deficits.

Key characteristics of võlakapitalit include fixed or variable interest payments and a maturity date. The repayment terms are usually clearly defined in a loan agreement or bond indenture. While debt financing can be an effective way to raise capital, it also introduces financial risk. Failure to meet debt obligations can lead to bankruptcy or default. The cost of debt, represented by interest rates, is influenced by factors such as creditworthiness, market conditions, and the term of the debt.