What does debt capital mean?

Definitions for debt capital
debt cap·i·tal

Here are all the possible meanings and translations of the word debt capital.

Wikipedia

  1. Debt capital

    Debt capital is the capital that a business raises by taking out a loan. It is a loan made to a company, typically as growth capital, and is normally repaid at some future date. Debt capital differs from equity or share capital because subscribers to debt capital do not become part owners of the business, but are merely creditors, and the suppliers of debt capital usually receive a contractually fixed annual percentage return on their loan, and this is known as the coupon rate. However, sometimes the loan is paid back based on a percentage of the company's monthly revenue instead of a fixed interest rate, such as the case with revenue-based financing. Debt capital ranks higher than equity capital for the repayment of annual returns. This means that legally, the interest on debt capital must be repaid in full before any dividends are paid to any suppliers of equity. A company that is highly geared (UK), or leveraged (US), has a high debt-to-equity capital ratio. As we already said that debt capital is a loan. This money (which was given to the company as loan) is given to the debt holders first before giving it to preference holder and equity holders. Equity holders (shareholders) have all rights in the business, but the debt holders have no rights in the business.

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Numerology

  1. Chaldean Numerology

    The numerical value of debt capital in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of debt capital in Pythagorean Numerology is: 3

Examples of debt capital in a Sentence

  1. Lucas Aristizabal:

    It will be viewed as a positive step in regaining access to the debt capital markets, which it relies on to support its investment plan and funding needs.

  2. Christopher Granville:

    The plausible partial lifting of European Union sanctions at the end of this year is consistent with debt capital markets becoming accessible again by non-sanctioned Russian issuers in the second half of the year, investors will no longer worry that companies who are not now sanctioned may suddenly appear on some new sanctions list in the near future.

Images & Illustrations of debt capital

  1. debt capitaldebt capitaldebt capitaldebt capitaldebt capital

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