Business GCSE
Loan capital
What Loan capital means in Business GCSE, as defined for Pearson Edexcel.
Definition of Loan capital
Check what you remember
Read the wording for your board, then hide it and explain Loan capital in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
An external source, such as a bank loan, that provides immediate funds but must be repaid with interest, increasing fixed costs.
Topics that use Loan capital
- Business growth (Pearson Edexcel GCSE)
Related terms
- Business growth
- Internal (organic) growth
- Limited liability
- Merger
- Public limited company (plc)
- Retained profit
- Selling assets
- Share capital
Using Loan capital in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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