Financial Capital

Definition of ‘Financial Capital’

A business will use financial capital to purchase the things need to manufacture products or provide their services (real capital), this might include raw materials, services, long term assets etc.

Financial capital can come in a number of forms including investment by the owners of the business, debt and loan finance, and retained profits.

Financial Template Financial Capital Definition

The financial capital definition for use in the financial projections template is taken to mean the amount invested by the owners and investors in the business. This is usually by way of cash injection.

Financial capital is shown on the balance sheet of the financial projections template under the heading Capital.

For further information see the Wikipedia financial capital definition.

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Financial Capital December 19th, 2015Team

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