borrowed capital

USAGE SUMMARY

The phrase "borrowed capital" is correct and usable in written English.
It can be used in financial contexts to refer to funds that a company or individual has obtained through loans or credit rather than through their own equity. Example: "The startup relied heavily on borrowed capital to finance its initial operations and expansion plans."

✓ Grammatically correct

News & Media

Formal & Business

Science

Academia

Encyclopedias

Wiki

Human-verified examples from authoritative sources

Exact Expressions

46 human-written examples

But those programs that are run and managed by local borrowers and connected to education, health care, small-business management, improved literacy and a savings fund that eventually replaces the borrowed capital — thereby liberating the borrowers from dependency on the lending organization — are worthy of support in Haiti and elsewhere in the developing world.

The New York Times

profit on any actual value in excess of the borrowed capital remaining unpaid.

Cornell University

The higher guarantee, he said, "is key to being able to lever borrowed capital".

The New York Times

"It sounds like he was really growing the farm with borrowed capital," Mr. Jerdon said.

The New York Times

Businesses backed by private equity generally had a higher ratio of borrowed capital to equity than did publicly quoted companies.

The Economist

Unlike most hedge funds, Apollo will base its management fee on total assets, including borrowed capital, according to the prospectus.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

14 human-written examples

Banks are finding it harder to borrow capital from each other, with loans to the "real economy" in the trough.

The Guardian

What to do: As it becomes harder to generate and borrow capital, every expenditure must be considered carefully.

Harvard Business Review

The investment company receives an income for doing absolutely nothing other than supplying or borrowing capital to purchase the land on which they receive annual leasehold charges.

Independent

students and faculty and staff members, he also said the university had used up much of its capacity to borrow capital.

The New York Times

Local authorities could borrow capital at a far lower rate, potentially enabling more care home places and fairer wages for underpaid carers.

The Guardian

Expert writing Tips

Best practice

Use "borrowed capital" in contexts where the source of funds is specifically a loan or debt instrument, rather than a general investment or revenue stream.

Common error

Avoid using "borrowed capital" to describe all sources of funding. Reserve it specifically for funds obtained through loans or debt. For general income, use terms like "revenue", "funding", or "capital".

Linguistic Context

The phrase "borrowed capital" functions primarily as a noun phrase, acting as the subject or object in a sentence. As Ludwig AI confirms, it denotes funds obtained via loans rather than equity. For example, "The company used borrowed capital to expand its operations."

Expression frequency: Common

Frequent in

News & Media

44%

Formal & Business

23%

Science

14%

Less common in

Academia

9%

Wiki

7%

Encyclopedias

3%

Ludwig's WRAP-UP

The phrase "borrowed capital" is a common and grammatically correct way to refer to funds acquired through loans or debt, as Ludwig AI confirms. It's particularly prevalent in financial, business, and economic discussions across various sources like The New York Times, Forbes, and The Economist. When using this phrase, it's essential to distinguish it from equity and other forms of revenue. Remember to reserve "borrowed capital" specifically for funds obtained through debt instruments. Alternatives such as "loan capital" or "debt financing" may be appropriate depending on the context.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

borrowed funds

A simpler and more direct way of saying "funds that have been borrowed".

loan capital

Emphasizes the 'loan' aspect, specifying that the capital is obtained through a lending arrangement.

debt financing

Focuses on the 'debt' aspect, highlighting the obligation to repay the borrowed funds.

loaned funds

A more general term emphasizing the funds were 'loaned' to the recipient.

credit capital

Uses the term 'credit' to specify the means by which capital is accessed.

debt-funded capital

Highlights the capital that is 'funded' by debt.

external financing

Refers to funding from 'external' sources, encompassing loans and other forms of debt.

debt-raised capital

Focuses on the process of 'raising' capital through debt.

liability financing

Highlights the liability aspect of financing through borrowing.

leveraged capital

Implies the use of debt to increase the potential return on investment.

FAQs

What does "borrowed capital" mean in finance?

"Borrowed capital" refers to funds that a company or individual obtains through loans or other forms of debt, which must be repaid with interest. It is a key component of a company's capital structure, distinct from equity.

How is "borrowed capital" different from equity?

Equity represents ownership in a company, while "borrowed capital" is debt that must be repaid. Equity investors receive a share of profits, while lenders of "loan capital" receive interest payments.

What are some alternatives to "borrowed capital"?

Depending on the context, you can use alternatives like "loan funds", "debt financing", or "debt-funded capital" to refer to funds obtained through debt.

What are the risks associated with using "borrowed capital"?

Relying heavily on "borrowed capital" increases financial risk, as the company is obligated to make regular interest and principal payments, regardless of its profitability. High levels of debt can also limit a company's flexibility and make it vulnerable to economic downturns.