financial capital

capital in cash form

In brief, financial capital is money used by entrepreneurs and businesses to buy what they need to make their products (or provide their services).Financial Capital vs. Real CapitalFinancial capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital like equipment for producing goods/services. Real capital may include shovels for gravediggers, sewing machines for tailors, or machinery for manufacturing firms. Financial capital is provided by lenders for a price: interest. Also see time value of money for a more detailed description of how financial capital may be analyzed.
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Financial Capital
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