Thursday, July 10, 2008

Finance Capital

Finance Capital is the fund that is provided by lenders to businesses so that they can purchase real capital like equipments for producing goods.Lenders provides this finance for a price i.e interest.Moreover it is the mechanism that represents wealth.It can also be obtained by producing more than what is immediately required and saving the surplus.There are various source of capitals like Project Finance, Share Capital, Retained Profit, Mortgage, Venture Capital.