Fremdkapital

debt capital; borrowed funds

noun FREMT-kah-pee-tahl Rare

Also means

external financing

Usage Note

Fremdkapital covers all funds a company has borrowed — loans, bonds, trade payables. Contrast with Eigenkapital. A high Fremdkapitalquote raises insolvency risk and is scrutinised by lenders and rating agencies.

Examples

"Durch die Expansion stieg der Anteil des Fremdkapitals erheblich."

Natural Translation

The share of debt capital rose considerably due to the expansion.

Literal Translation

Through the expansion rose the share of the borrowed-capital considerably.

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