Skip to content
doubtly
Sign up

1 answer

Log in to upvote 0 Log in to downvote

Best answer

Answer: Borrowed capital is the capital raised by a company by way of loans or borrowings from outsiders.

  • Sources include debentures, bonds, public deposits and loans from banks and financial institutions.
  • Lenders are creditors of the company; they get a fixed rate of interest whether the company earns profit or not.
  • It is repayable after a fixed period, so it is temporary capital.
  • Lenders do not get voting rights or control; loans are usually secured by a charge on assets.
Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report
Was this answer helpful?
Sign in to comment

Your answer

Log in or create a free account to answer this question.