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Capital Loan

An interfund loan made to finance the design, acquisition, construction, installation, or improvement of real or personal property. Capital loans are not for paying operating expenses.
Loan capital is funding that must be repaid. It's made up of loans, bonds, and preferred stock that must be paid back to investors. Unlike common stock, loan capital requires periodic interest payments to investors for use of the funds.
Loan capital can be used for making investments, either personal or business. It differs from equity capital, which is money invested by the company's owners and shareholders.

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