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Meaning of loan capital

 

 

 

Loan capital

 

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Business glossary

 

Meaning of term loan capital :

 

Loan capital is money that a business has borrowed for a lengthy period of time to fund expansion and development of the business. It is shown on the balance sheet as a part of the capital employed. The proportion of loan capital to other capital is known as the gearing ratio. A high proportion of loan capital means high interest payments.

 

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Loan capital

 

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Meaning of term loan capital

 

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