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borrowed capital

borrowed capital

4.8
Money a business gets from others that it must pay back with interest
  • noun
  • Specialized
translation icon : capital prestado
  • The company secured a loan to increase its borrowed capital, allowing for expansion into new markets.

Examples

  • While prices were rising, Russian firms used their unfettered access to Western credit markets to borrow capital with few strings attached.

    Academic text (2009)
  • Startups often rely on borrowed capital from investors to fund their initial operations until they become profitable.

  • Thus, our ability to borrow capital even at absurdly low interest rates poses a greater risk to the lender.

    Blog text (3)
  • Payment for foregone opportunities must be made after the fact on the basis of actual return on the borrowed capital and can never be made legally binding.

    Academic text (2012)
  • Brazil used this massive influx of borrowed capital to finance a wide range of development plans, from road networks to reservoirs to resettlement schemes.

    Academic text (1996)
  • For example, women operate their own savings accounts, obtain loans for domestic, social, or vocational uses, buy tools, equipment, and raw materials through credit facilities, and borrow capital to initiate and enhance their trade.

    Academic text (1997)
  • It was just following orders, so to speak, as it watched the Kohl government pay for an annual reunification bill of about 180 billion Deutsche marks ($120 billion) with borrowed capital rather than by raising taxes or cutting spending.

    Academic text (1993)
  • By improving their credit rating, the business was able to obtain more favorable terms on their borrowed capital.

Synonyms

loan
vsborrowed capital
2.0

An amount of money borrowed from a bank that must be paid back with interest

is narrower, it refers only to company debt rather than funds for individuals
business loan
vsborrowed capital
12 2.7

Money that a company borrows from a bank to start or grow

is broader, includes other creditor money and long term debt instruments
commercial loan
vsborrowed capital
1 3.4

An amount of money a bank gives a business that it must pay back with interest

is the same type but also includes other debt forms like bonds and debentures

How Big

loan participation
  • Specialized
6.4
bond issue
  • Specialized
10 5.4
bank loan
14 2.3
borrowed capital
  • Specialized
4.8
personal loan
  • Specialized
7 2.6
microloan
  • Specialized
1 3.6

Surface Forms

Morphology

borrowed + capital

The phrase is directly compositional: 'borrowed' (obtained by borrowing) modifies 'capital' (funds), so the combined meaning 'funds obtained by borrowing' follows immediately from the parts. This is a regular noun–modifier pattern common across languages and in English finance vocabulary, so a B1 learner who knows both constituents would readily infer the meaning.

Etymology

Borrowed capital uses a simple picture: borrowed means taken for a time and capital means money for a business. Imagine a shop borrowing a ladder to reach a high shelf; the ladder helps now but must be returned, so borrowed capital is money a business uses now and must 'repay' later.