Financial Capital

Financial capital refers to the funds—such as money or assets—that a business uses to operate, grow, and invest. It includes cash, investments, and other financial resources that enable a company to purchase equipment, hire staff, develop products, or expand. Essentially, it’s the monetary foundation that supports a company's activities and plans. Financial capital can come from sources like investors, loans, or retained earnings. Managing this capital effectively is crucial for a company's success, ensuring it has enough resources to meet its goals and sustain operations over time.