debt capital


loan capital

or

debt capital

the money employed in a company that has been borrowed from external sources for fixed periods of time by the issue of fixed-interest financial securities such as DEBENTURES. The providers of loan capital do not normally share in the profits of the company but are rewarded by means of regular INTEREST payments which must be paid under the terms of the loan contract. Interest payments are a business expense which must be charged against revenues in calculating profits. See SHARE CAPITAL, BALANCE SHEET, CAPITAL GEARING.

debt capital

see LOAN CAPITAL.

debt capital

Money borrowed on a long-term basis and used to purchase an investment such as real property.