Purpose – The purpose of this paper is to determine the factors that influence in the capital structure of non‐financial companies listed in the Stock Exchange of Lima. Design/methodology/approach – To achieve this goal, the authors used the panel data model with random effects. The study of the capital structure has focussed on the Trade‐off Theory which states that firms finance their investments for tax benefits, while the Pecking Order Theory states that companies have an order of priority on obtaining funding. Findings – The results obtained confirm that profitability, size, collateral value of assets (CVA) and non‐debt tax shields (NDTS) are the factors that determine the level of long‐term debt of these Peruvian companies. Practical implications – The results obtained confirm that profitability, size, CVA and NDTS are the factors that determine the level of long‐term debt of these Peruvian companies. Originality/value – This paper is a first contribution on the determinants of the level of indebtedness of the companies in Peru. There is an extensive literature on the determinants of capital structure, but it is the first work done for the business sector in Peru.