The use of capital from debt pose a financial risk. The higher the level of use of debt (leverage), the higher the financial risk faced by the SME entrepreneurs in the form of financial risk due to variability in net profit companies use debt in their capital needs. If the company uses debt in its capital, it must prioritize interest payments to creditors rather than generate revenue for the owner of the company. Thus, the financial risks caused variability in net income (net income). If the management company may utilize funds from debt to operating profit greater than interest expense, the use of debt can provide benefits to the company and will increase the rate of return on the owner of the company. Conversely, if management can not properly utilize the funds, the company suffered a loss. Testing the hypothesis that there are significant perception of the use of debt to financial risk SME entrepreneurs in the culinary sector, carried out by performing a simple regression with variable perceptions of the use of debt as an independent variable and the financial risk variables as the dependent variable. Based on responses to questionnaires 60 respondents culinary entrepreneurs who have debt in their capital, it can be concluded that the hypothesis that there are significant perception of financial risk terhadapan use of debt is acceptable.

Keywords: debt, financial risk, SMEs