loan capital |
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Definition
Part of a firm's capital employed that is (1) not equity capital, (2) earns a fixed rate of interest instead of dividends, and (3) must be repaid within a specified period, irrespective of the firm's financial position. It may be obtained from a bank or finance company as long-term loans, or from debt-equity investors in the form of debentures or preferred stock (preference shares), and is usually secured by a fixed and/or floating charge on the firm's assets. Unlike debt capital, it does not include short-term loans (such as overdraft). Also called borrowed capital.
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loan capital is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
loan capital appears in the definitions of the following terms:
capital instrument,
venture capital firm,
development bank,
market signal,
permanent capital,
risk rate,
financial structure,
capital reorganization,
financing cost
and
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http://www.businessdictionary.com/definition/loan-capital.html