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 Glossary   >   L   >   "Loan capital" Definition   

        Loan capital

That part of a company"s capital structure which is raised by loans. Such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. At the end of the period the capital is repaid. This contrasts with share capital where shareholders are entitled to a proportion of the company"s profits usually by way of dividends.

Loan capital


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Loan capital - That part of a company"s capital structure which is raised by loans. Such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. At the end of the period the capital is repaid. This contrasts with share capital where shareholders are entitled to a proportion of the company"s profits usually by way of dividends.


Loan capital : that part of a company"s capital structure which is raised by loans. such loans (typically debentures) are usually over a stated period of time and pay fixed interest to the person making the loan. at the end of the period the capital is repaid. this contrasts with share capital where shareholders are entitled to a proportion of the company"s profits usually by way of dividends.