loan capital - is the money available under the terms of the loan at a certain percentage.It is an integral part of economic development and makes it possible to redirect available funds of citizens and legal persons in the area who need financing.Inaction money contrary to the principles characteristic of Western states, so entrepreneurs are constantly in search of the most lucrative offers which allow later for more profit.However, deposits can be made only in cases where the country have high borrowing requirements.
sources : Loan capital consists of several sources.It is based on allocated money intended for reconstruction of fixed assets and depreciation of equipment bound.It includes the share of the working capital made available at mismatch timing of implementation and production of goods.Another source becomes variable capital, which is formed in the gap between the supply of money after the sale of goods until payment of wages to employees of a particular company.
Another component is the surplus value, which is intended to accumulate capital and according to the size of the plant and its technical equipment.Loan capital is another source - this is free money citizens received income from private sector and turn into savings.
Features : It is believed that the circulation of money and credit are interrelated, since the funds should be redirected to other areas of the economy.Capital is the property and its use can be profitable and the owner and the borrower.For example, in the provision of equity to credit the person who owns the savings, generates revenue in the form of interest, and businesses using loans for production development, increasing its profit after realization of the products.
Market : Modern capital market allows owners of money to earn income as a percentage, which becomes a form of surplus value.Its structure is not homogeneous, and the main actors are the primary investors, specialized intermediaries and borrowers.The main segments are mortgage, stock and money market, which uses loan capital directed to carry out credit operations.
The primary investors are the owners of free cash flow.Specialized intermediaries are financial and credit institutions operating directly accumulation of money citizens and directing those resources to their lending.The number of borrowers may enter the state, as well as legal entities and individuals who experience a serious shortage of cash and are willing to pay for their temporary use for their own purposes.
Necessity : In a market economy without credit relations impossible to do, because by issuing loans can accelerate the circulation of money.Other advantages are the possibility to carry out a full investment of free money in the industry, the financing of which will lead to the formation of a new surplus value.Credit is stimulated by the development of productive forces in a particular state, but also significantly speeds up the process of formation of sources of capital, which is sent to the reproduction, made possible by scientific and technological progress.
