Is Zakat on wealth obligatory for borrowed money used in trade, or on its profits?

Borrowed money used for trade is subject to zakat as trade goods, by assessing the capital and profits upon the completion of a hawl (lunar year). If it reaches the nisab (minimum threshold) on its own or in combination with other wealth, its zakat of 2.5% is to be paid after deducting the amount of the debt. If, after deduction, the remaining amount reaches the nisab, zakat is paid; otherwise, it is not. This is because debt, according to the majority of scholars, negates zakat on hidden wealth such as cash and trade goods.