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What is finance cost?

Updated: 9/21/2023
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10y ago

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Finance cost is the interest charges paid by company to borrow money from open market or debt collected from external sources and also any money spent to get finance for company is also included in finance cost.

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10y ago
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Mubarak A

Lvl 3
1y ago

Finance cost is a term that refers to the cost of borrowing money. It can include interest charges on loans, as well as other fees and charges associated with borrowing. For example, if you take out a loan to purchase a car, the finance cost would include the interest charges on the loan, as well as any origination fees or other charges that the lender may impose. Finance cost can also refer to the cost of capital for a business, which is the cost of the money that the business uses to finance its operations and investments. This can include interest on loans, as well as the cost of equity capital, such as the dividends that a company pays to its shareholders.

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