Debt capital refers to borrowed funds that a firm utilizes to support its business operations, growth, or investment projects. These funds come with the obligation to pay back with interest and can be sourced from various lenders, such as banks, bond investors, or other financial institutions.
A leveraged buyout (LBO) is a financial transaction where a company is acquired primarily using borrowed funds, with the target company's assets often used as collateral for the loans.
Other People's Money (OPM) refers to the financial practices of leveraging borrowed funds or investment capital instead of using one's own resources to facilitate business activities and financial growth.
An investment strategy involving the use of borrowed funds to increase the return on an investment.
The rate of interest charged for the use of financial resources adjusted for the effect of the inflation rate within an economy.
