Browsing: Business Capital

Business capital is the money and resources a company uses to run and grow its operations. It includes cash, equipment, property, inventory, and other assets that help a business produce goods or provide services. In simple terms, business capital is what a company needs to keep moving—whether it’s paying employees, buying raw materials, or maintaining day-to-day expenses. Without enough capital, a business cannot operate smoothly or take advantage of new opportunities.

There are different types of business capital, such as working capital for daily operations, fixed capital for long-term assets like buildings and machinery, and financial capital from investors or loans. Understanding how business capital works is essential for business owners because it affects profitability, growth, and financial stability. Proper management of capital ensures that a business can cover expenses, invest in expansion, and stay competitive in the market.