Debt capital differs from equity or share capital because subscribers to debt capital do not become part owners of the business, but are merely creditors, and the suppliers of debt capital usually receive a contractually fixed annual percentage return on their loan, and this is known as the coupon rate.
Debt capital differs from equity or share capital because subscribers to debt capital do not become owners of the business, but are merely creditors, and the lenders of debt capital usually receive a fixed annual percentage return on their loan, known as the interest rate.