What Is The Difference Between Capital And Finance?


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Rowan Webb Profile
Rowan Webb answered

Financing is normally assets or capital which is supplied by someone other than the owners or stake-holders of the business. Capital in itself can just be the collection of assets or cash that is used to build a business or start an initiative - and can come from anyone and anywhere. Having to approach someone else to help fund these initiatives will be considered a financing scheme in which you are looking for capital from someone ELSE.

Suhail Ajmal Profile
Suhail Ajmal answered
Capital is the assets available for use in the production of further assets and finance is the branch of economics that studies the management of money and credit and banking and investments.

For example you have 100000$ to start a business then this money is called your capital and when you will use it in the business, the finance studies taking into account the risks entailed in this projects.

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