Borrowed Funds

Borrowed Funds

Money one has received from another party with the agreement that it will be repaid. Most borrowed funds are repaid with interest, meaning the borrower pays a certain percentage of the principal amount to the lender as compensation for borrowing. Most borrowed funds also have a maturity date by which time the borrower must have repaid the loan. Borrowing and lending occur informally between family and friends, at the retail level through banks and on a large scale through governments and institutional investors.
References in periodicals archive ?
Interest expense on borrowed funds increased $366,000 for the fourth quarter of 2017 due to an increase in the average cost of borrowed funds to 1.
The service said that at the same time the borrowed funds fell by 51 billion KZT (6.
Russia will contribute 50% of funds into the charter capital and will attract borrowed funds for the chain of the hydropower plants on the Naryn river, Russia's Energy Minister Alexander Novak explained the financing arrangements for hydropower plants to be built in Kyrgyzstan to reporters on Thursday.
Funding sources consist of: (1) equity capital, (2) borrowed funds, and (3) other liabilities.
The plan concerns its popular no-time-limit margin trades for which Matsui sets no deadlines for repaying borrowed funds, although it charges interest.
During its investigation, the IRS "traced" the company's borrowed funds to several of its dividend-paying stock purchases and then invoked section 246A to reduce the corporation's dividends-received deduction.
He also said the partnership is reviewing its legal options, including whether the state loan could be paid off with borrowed funds.
Answering questions about the financing of the stadium, Chakrabarti explained that start-up capital will have to be raised through borrowed funds --probably by issuing bonds--and the City budget prohibits paying for education through borrowed funds.
465 at-risk rules; however, taxpayers who invest in passthrough entities may be affected the most, because they are likely to use borrowed funds to increase their at-risk basis for purposes of deducting allocated losses.
This structure can accelerate a company's cash flow by allowing it to borrow against the future value of its current assets that are expected to become cash in the near term, in turn, using the borrowed funds to finance working capital.
Comparisons with the results of Board-spronsored consumer surveys in 1988 suggest that those who refinance to mobilize equity use their "extra" borrowed funds in much the same manner as those who have obtained home equity loans (table 4).
The purchase price was paid using the proceeds received in connection with nonutility property sales that occurred in the fourth quarter of 2006, pursuant to Internal Revenue Code Section 1031, and using borrowed funds of approximately $15,500,000.