Velkapääomaa
Velkapääomaa (debt capital) refers to funds borrowed by a company to finance operations and investments. It comprises instruments such as bank loans, bonds, notes, and other debt instruments. Unlike equity capital, debt must be repaid and carries mandatory interest payments, creating fixed obligations that exist regardless of profitability. Debt capital is a central element of corporate capital structure and affects leverage, cost of capital, and risk profile.
Debt can be short-term or long-term, secured or unsecured, and senior or subordinated. Common forms include bank
Debt offers potential tax advantages in many jurisdictions because interest payments are deductible, reducing after-tax cost.
On the balance sheet, velkapääomaa appears as liabilities; interest expense is reported in the income statement.