borrowed funds

USAGE SUMMARY

The phrase "borrowed funds" is correct and usable in written English. You can use it when referring to money that has been obtained through loans or credit. Example: "The company relied on borrowed funds to finance its expansion." Alternative expressions include "loaned money" and "debt financing."

✓ Grammatically correct

Financial contexts

Legal documents

News reports

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

A moral hazard arises if the borrower applies the borrowed funds to different investment projects than those agreed upon with the lender, who is hindered by his lack of information and control over the borrower (Bebczuk 2003).

Financial Innovation

About 98 percent of Hudson City's borrowed funds are structured "putable" borrowings, which may have to be replaced if interest rates rise significantly, according to the filing.

The New York Times

Borrowed funds from natural persons.

Cornell University

§ 701.38 Borrowed funds from natural persons.

Cornell University

The business has borrowed funds from HSBC.

The Guardian - Lifestyle

12 CFR § 701.38 - Borrowed funds from natural persons.

Cornell University

Why haven't you borrowed funds to restore hydroelectric capacity?

The Guardian

Take a bank that invests $200m in Treasuries, mostly with borrowed funds.

The Economist

Washington should not offer more borrowed funds to maintain this impossible status quo.

The New York Times

Typically, customers use margin loans to buy securities on borrowed funds.

The New York Times

When Braid's profits ran out, he borrowed funds from a friend.

The New Yorker

Expert writing Tips

Best practice

When discussing financial statements or agreements, use "borrowed funds" to clearly indicate money obtained through a formal loan or credit arrangement. This phrase is particularly suitable for formal contexts.

Common error

Avoid using "borrowed funds" when referring to money received as grants or gifts, which do not require repayment. Grants are "grant funds", not "borrowed funds".

Linguistic Context

The phrase "borrowed funds" functions primarily as a noun phrase, typically serving as the object of a verb or the subject of a clause. It refers to financial resources obtained through borrowing, as demonstrated by Ludwig in numerous examples.

Expression frequency: Very common

Frequent in

News & Media

37%

Formal & Business

20%

Academia

14%

Less common in

Science

13%

Wiki

2%

Encyclopedias

1%

Ludwig's WRAP-UP

In summary, "borrowed funds" is a common noun phrase referring to money obtained through loans or credit. Ludwig AI analysis confirms its grammatical correctness and widespread usage across various contexts, especially in finance, business, and news. When using this phrase, ensure it accurately reflects the concept of repayable financial resources, distinguishing it from other forms of funding like grants or equity. Alternatives include "loaned capital" or "debt financing", but "borrowed funds" is suitable for a wide range of formal and informal communications.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

borrowed money

A more straightforward synonym, simply replacing "funds" with "money".

funds from loans

Directly states that the funds originated from loans.

funds acquired through debt

Specifies that the source of the funds is debt, providing clarity on the acquisition method.

loaned capital

Focuses on the capital aspect, emphasizing the financial resource obtained through borrowing.

capital borrowed

Reverses the word order to emphasize the act of borrowing the capital.

credit obtained

Highlights the act of obtaining credit, which results in having funds to use.

credit funding

Highlights that credit lines act as a funding mechanism.

debt financing

Emphasizes the method of financing through debt, resulting in the use of borrowed money.

financing through debt

Focuses on the process of securing financial resources through debt instruments.

leveraged funds

Indicates that the funds are being used to increase potential returns, often involving risk.

FAQs

How can I use "borrowed funds" in a sentence?

You can use "borrowed funds" to describe how an entity finances its activities, for example: "The company used "borrowed funds" to expand its operations."

What are some alternatives to "borrowed funds"?

Depending on the context, alternatives to "borrowed funds" include "loaned capital", "credit obtained", or "debt financing".

Is it correct to say "borrowed fund" instead of "borrowed funds"?

No, "borrowed funds" is the correct plural form, as it typically refers to multiple sources or a collective amount of money. "Borrowed fund" is rarely used.

What is the difference between "borrowed funds" and "retained earnings"?

"Borrowed funds" represent external financing that must be repaid, while "retained earnings" are profits a company has accumulated and reinvested in the business.