Loan capital
Loan capital refers to funds borrowed by a business to finance its operations, expansion, or investments. Unlike equity capital, which involves selling ownership stakes, loan capital must be repaid with interest over a specified period. Sources include banks, financial institutions, and bonds. It is a crucial financing tool for businesses seeking growth without diluting ownership. Proper management ensures liquidity and financial stability while avoiding excessive debt burdens. https://capitalbusinessloans.co.uk/