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The fee that a company must pay when borrowing money to fund their business is called interest. This is typically expressed as a percentage of the loan amount and is charged by lenders as compensation for the risk of lending and the opportunity cost of their funds. Interest can vary based on factors such as the borrower's creditworthiness, the loan's duration, and prevailing market rates.

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2mo ago

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The cost of borrowing money is called the?

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Why the properties of business man called company assets?

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What is it called when the money we pay for the privlege of borrowing money?

The money we pay for the privilege of borrowing money is called "interest." It is typically expressed as a percentage of the loan amount and is charged by lenders as a fee for the service of providing funds. Interest can vary based on factors such as creditworthiness and the type of loan.