täisekapitalikuks

Täisekapitalikuks is an Estonian term that translates to "full capitalization" or "full equity" in English. It refers to a state where a company has raised sufficient capital to fund its operations and growth without relying on debt financing. In essence, the company's assets are entirely financed by its shareholders' equity.

This situation implies that the company has a strong financial standing and a low financial risk. When a company is fully capitalized, it does not have any outstanding loans or other forms of debt. This can lead to several advantages, such as lower interest expenses, greater financial flexibility, and increased resilience during economic downturns. A fully capitalized company is also often perceived as more stable and trustworthy by investors, creditors, and other stakeholders.

However, achieving full capitalization can be challenging. It often requires significant investment from founders or external equity investors. While avoiding debt can be beneficial, some companies might strategically choose to use leverage (debt financing) to amplify returns on equity, a strategy that is not employed in a state of full capitalization. The decision to pursue or maintain full capitalization depends on a company's specific industry, growth stage, and overall financial strategy.