After a period of growth, my restaurant needed more <u>capital</u> to continue expanding.
For your restaurants to expand, you will need to source more funds also known as capital.
Capital is a fund that is held in a deposits account. It can also be linked with a capital asset of a firm that needs a certain amount of capital to expand.
<h2>Further Explanation</h2>
Capital is one of the major factors in running a business and it can be cash or liquid assets obtained for taking care of business expenses. Companies used capital to provide continuous production of goods towards making profits.
However, there are three types of capital and these include:
- Debt capital
- Working capital
- Equity capital
Debt capital: a business can take capital from an assumption of debt. Businesses can obtain debt capital from private or government sources such as online lenders, financial institutions, federal loan programs, etc.
Working capital: this type of capital includes a company’s major liquid capital assets which are used for the day to day running of the company’s activities.
Equity capital: this type of capital can be in several forms which include public equity, real estate equity and private equity. However, Public and private equity can be in the form of shares
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KEYWORDS:
- capital
- restaurant
- expanding
- profit
- company
- goods
- services
