Definition
Debt capital refers to funds borrowed by a business through loans, bonds, or credit lines that must be repaid with interest.
Related Services
Debt structuring, financial modeling, and loan advisory services help businesses acquire and manage debt capital effectively.
Problem and Application
Excessive reliance on debt capital increases financial risk, while insufficient debt can limit growth opportunities. Companies must balance debt with equity financing.
Conclusion
Debt capital is a strategic financing tool, but businesses must manage repayment obligations and interest costs to maintain financial health.
