velkapääoma

Velkapääoma, commonly translated as debt capital, refers to funds a company raises by borrowing rather than by issuing new equity. It includes bank loans, corporate bonds, notes payable, and leases that are accounted for as liabilities. Debt capital is used to finance operations, capital expenditures, acquisitions, and working capital needs. Unlike equity, debt does not confer ownership or voting rights, but it creates an obligation to repay principal plus interest.

Debt has several advantages. The interest expense on debt is often tax-deductible, reducing the net cost of borrowing. When a project earns a return above the cost of debt, leverage can improve return on equity and avoid ownership dilution. Debt also provides a predictable financing structure without diluting control.

However, it increases financial risk. Regular principal and interest payments reduce cash flow and can threaten solvency during downturns. Covenants, repayment schedules, and refinancing risk add to the complexity of debt financing. The cost and availability of velkapääoma depend on creditworthiness, market conditions, and the overall tax and regulatory environment.

Forms of velkapääoma include short-term bank loans, long-term corporate bonds, convertible debt, notes payable, and finance leases. Companies often manage capital structure by balancing debt and equity to optimize the weighted average cost of capital while maintaining financial flexibility and meeting lender requirements. The concept is central to corporate finance and is analyzed through theories of leverage and capital structure, such as trade-off and pecking order perspectives.