Capital Financing

Capital financing refers to the process of raising funds to acquire or upgrade long-term assets like buildings, machinery, or equipment that support a business or organization’s operations over time. It involves obtaining capital through methods such as loans, issuing bonds, or selling equity. This type of funding is essential for growth and infrastructure development, providing the resources needed for future productivity. Unlike daily operational expenses, capital financing focuses on strategic investments that have lasting value and require careful planning to ensure they align with the organization’s financial stability and goals.