cheap capital

USAGE SUMMARY

The phrase "cheap capital" is correct and usable in written English.
It is typically used in financial contexts to refer to funds that are available at a low cost, often due to low interest rates or favorable borrowing conditions. Example: "The company was able to expand rapidly due to the availability of cheap capital in the market."

✓ Grammatically correct

News & Media

Formal & Business

Science

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

Cheap capital fed their growth.

The Economist

CHEAP capital has been crucial to China's rise.

The Economist

Nor did he put that "cheap capital" to good use.

The New Yorker

Fast development, cheap capital and more efficient shipping all help.

The New York Times

In 2012, global stocks were supported by cheap capital made available by central banks worldwide.

The New York Times

Yet cheap capital is not wisely spent.Quite how patient this capital will remain is uncertain.

The Economist

As Asia's cheap capital has disappeared, so has the main advantage its chip makers had.

The Economist

In addition, artificially cheap capital caused too much investment in unprofitable ventures.

The Economist

Stagnation or a renewed debt crisis: it is an unappetising choice.* "Farewell to Cheap Capital?

The Economist

The proposal would give foreign banks much more access to cheap capital.

The New York Times

In past decades, this "double gearing" provided cheap capital that fueled the economy's rise.

The New York Times

Expert writing Tips

Best practice

In financial reports or analyses, clarify what makes the capital "cheap", such as low interest rates, government subsidies, or favorable market conditions.

Common error

Ensure you clarify the source and conditions that make the capital "cheap". Without context, it may imply low quality or unsustainable practices. Instead, be specific about the financial factors at play.

Linguistic Context

The phrase "cheap capital" functions as a noun phrase where the adjective "cheap" modifies the noun "capital". Ludwig AI confirms this phrase is frequently used in various contexts, serving to describe the cost of funds available for investment or business operations.

Expression frequency: Very common

Frequent in

News & Media

50%

Formal & Business

25%

Science

15%

Less common in

Encyclopedias

5%

Reference

3%

Wiki

2%

Ludwig's WRAP-UP

In summary, "cheap capital" refers to funds available at a low cost, typically due to low interest rates or favorable borrowing terms. Ludwig AI confirms the phrase is grammatically correct and very common across various authoritative sources, particularly in News & Media, Formal & Business, and Science contexts. While it can stimulate economic growth, it's essential to consider potential risks like overinvestment and asset bubbles. Alternatives like "low-cost capital" and "affordable capital" offer similar meanings, and clarifying the source and conditions contributing to "cheapness" enhances clarity in your writing. Always aim for specificity to avoid ambiguity when using this phrase.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

low-cost capital

Replaces "cheap" with "low-cost", emphasizing the affordability aspect.

affordable capital

Similar to "low-cost capital", focusing on the accessibility of the capital due to its price.

inexpensive capital

Emphasizes the low price of the capital.

low-interest capital

Specifies that the capital is cheap due to low interest rates.

cheap financing

Focuses on the financing aspect of obtaining capital at a low cost.

easy capital

Highlights the ease of access to the capital, implying low cost or favorable terms.

advantageous capital

Focuses on the benefits and favorable conditions associated with acquiring the capital.

favorable capital

Capital with beneficial terms and conditions, making it an attractive option.

cheap money

A more colloquial term for capital available at low interest rates.

readily available capital

Emphasizes the availability and accessibility of capital, often implying low cost.

FAQs

How is "cheap capital" typically used in economic discussions?

"Cheap capital" is commonly used to describe situations where interest rates are low and borrowing is easy, encouraging investment and economic activity. It is often linked to monetary policy and its effects on markets.

What are some alternatives to using the phrase "cheap capital"?

You can use alternatives like "low-cost capital", "affordable capital", or "low-interest capital" depending on the context. Each alternative emphasizes a slightly different aspect of the concept.

In what contexts is it appropriate to use the term "cheap capital"?

It's appropriate in contexts discussing investment, economic policy, and market trends where access to funds at a low cost is a significant factor. This includes financial news, academic papers, and business reports.

Is "cheap capital" always a positive thing for an economy?

While "cheap capital" can stimulate growth, it can also lead to overinvestment, asset bubbles, and unsustainable debt levels. It is important to consider both the benefits and risks associated with easy access to low-cost funds.