Playing now

Playing now

What is capital?

Glossary definition

What is capital?

Capital is often stated as what’s left over when a company’s liabilities are deducted from its assets – also referred to as working capital.

In more general terms, capital is the financial resource available for a business to use. In this context, capital may include investments or profit retained at the end of a tax year.

Capital is vital to keep a business running and ensure it can pay its bills.