build up capital

USAGE SUMMARY

The phrase "build up capital" is correct and usable in written English.
It can be used in financial contexts to refer to the process of accumulating funds or resources for investment or business purposes. Example: "In order to expand our operations, we need to build up capital through various funding sources."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

23 human-written examples

Curtailing dividend payments would have been the fastest, cheapest way for banks to build up capital.

The New York Times

They can prod banks with taxpayer guarantees to shrink their risks and to build up capital buffers to absorb losses.

The Economist

It is true that this might cut into bank profits, especially during a transitional period, as you build up capital.

Harvard Business Review

The bank says it would have plenty of time to build up capital through earnings or that it could take steps to free up capital through asset sales.

The Economist

Spain's use of "dynamic provisioning", an accounting technique designed to build up capital buffers in good times, did not stop the banking system from requiring a bail-out.

The Economist

A wise regulatory regime would require institutions to build up capital in good years so that they can husband their resources in lean years.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

37 human-written examples

During his second year as chief, Mr. Moynihan sold off noncore assets and built up capital levels.

The New York Times

During his second year leading the bank, Mr. Moynihan aggressively sold off noncore assets and built up capital levels.

The New York Times

In the good years, banks had become highly leveraged – they had increased their lending far more rapidly than they had built up capital to guard against losses.

The Guardian - Business

Since then, private insurers have built up capital reserves that were not significantly checked even by last year's Hurricane Hermine.

The Washington Post

And they built up capital for the purpose of protecting those loans in the event of a downturn.

Forbes

Expert writing Tips

Best practice

When writing about financial strategies, use "build up capital" to clearly convey the process of accumulating funds for future investments or operational needs.

Common error

Avoid using "build up capital" when you are only referring to short-term profits or revenue. "Building up capital" implies a strategic, long-term effort to accumulate resources.

Linguistic Context

The phrase "build up capital" functions as a verb phrase, describing the action of accumulating financial resources. As confirmed by Ludwig AI, it is correct and usable in written English, especially in financial contexts.

Expression frequency: Common

Frequent in

News & Media

35%

Formal & Business

33%

Science

32%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, the phrase "build up capital" is a common and grammatically sound way to describe the process of accumulating financial resources. According to Ludwig AI, it is correct and usable in written English. Predominantly used in news, formal business, and scientific contexts, it signifies a strategic, long-term approach to increasing financial strength. Remember to use it appropriately to convey the gradual accumulation of funds and to distinguish it from short-term gains. Understanding this distinction will help ensure accurate and effective communication in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

acquire capital

Implies gaining or obtaining capital through various means.

accumulate funds

Focuses on the gradual accumulation of financial resources.

develop equity

Centers on enhancing ownership value in a business or asset.

increase assets

Emphasizes the growth of valuable resources or possessions.

expand reserves

Relates to increasing the amount of funds held in reserve.

grow wealth

Highlights the expansion of overall financial well-being.

secure financing

Highlights obtaining the necessary funds for a project or venture.

amass resources

Suggests gathering a significant quantity of resources.

gather investment

Implies collecting funds from investors.

generate savings

Focuses on creating a pool of saved money.

FAQs

What does it mean to "build up capital"?

To "build up capital" means to gradually accumulate financial resources or assets over time, typically for investment, business expansion, or to create a financial buffer.

How can a company "build up capital"?

A company can "build up capital" through retained earnings, issuing stock, securing loans, or attracting investments.

What are some alternatives to saying "build up capital"?

You can use alternatives like "accumulate funds", "increase assets", or "grow wealth" depending on the context.

Why is it important for banks to "build up capital"?

It's important for banks to "build up capital" to ensure they have sufficient resources to absorb potential losses and maintain financial stability.