borrowed capital / debt capital
das Fremdkapital
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borrowed capital / debt capital
Funds made available to a company by others for a limited period and required to be repaid. On the balance sheet, borrowed capital comprises the company's liabilities and provisions and is contrasted with equity.
Das Unternehmen finanziert den Bau der neuen Fabrik mit Fremdkapital in Form eines Bankkredits.
The company is financing the construction of the new factory with borrowed capital in the form of a bank loan.
| gender | neuter das |
|---|---|
| genitive | des Fremdkapitals |
| singular | plural | |
|---|---|---|
| nominative | das Fremdkapital | – |
| accusative | das Fremdkapital | – |
| dative | dem Fremdkapital | – |
| genitive | des Fremdkapitals | – |
The article changes with the case; it is shown in colour.
'Fremdkapital' (borrowed capital) is made up of 'fremd' (external) and 'Kapital' (capital). The first component indicates that the money comes from outside the company.
Für die Erweiterung des Betriebs musste das Unternehmen zusätzliches Fremdkapital aufnehmen.
The company had to raise additional borrowed capital to expand its operations.
'Fremdkapital' (borrowed capital) is particularly often used with the verbs 'aufnehmen' (to raise), 'zurückzahlen' (to repay), 'verzinsen' (to pay interest on), and 'abbauen' (to reduce). The phrase 'Fremdkapital in Form eines Kredits' (borrowed capital in the form of a loan) is also common in economic texts.
Das Unternehmen will sein Fremdkapital in den nächsten Jahren schrittweise abbauen.
The company intends to gradually reduce its borrowed capital over the next few years.
'Fremdkapital' (borrowed capital) occurs particularly often in balance sheet and financial texts. There, it is usually given as an amount, proportion, or ratio and described in more detail according to its maturity or origin.
In der Bilanz ist das kurzfristige Fremdkapital deutlich gestiegen.
The company's short-term borrowed capital has increased significantly on the balance sheet.
