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| What is a Loan Capital?
Loan Capital is part of the business's capital. Loan capital make up all the loans what the firm has accumulated in a given period. This loan is usually payed off in a long term with a fixed interest rate. The same idea is with the mortgage capital.
For example your running a company and you need an X amount of money to pay your employees or other costs and the income will come in later. This is when you take out a loan and it's considered as a capital one. Which you pay in a long term. | | | | |
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