What Is a Capital Investment?

Capital investment is a sum of money provided to a company to further its business objectives. The term also can refer to a company's acquisition of long-term assets such as real estate, manufacturing plants, and machinery.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

How Capital Investment Works

Capital investment is a broad term that can be defined in two distinct ways:

 

  • An individual, a venture capital group, or a financial institution may make a capital investment in a business. A sum of money is handed over as a loan or in return for a promise of repayment or a share of the profits down the road. In this sense of the word, capital means cash.

  • The executives of a company may make a capital investment in the business. They buy long-term assets that will help the company run more efficiently or grow faster. In this sense, capital means physical assets.


In either case, the money for capital investment has to come from somewhere. A new company might seek capital investment from any number of sources including venture capital firms, angel investors, and traditional financial institutions. The capital is to be used to further develop and market its products. When a new company goes public, it is acquiring capital investment on a large scale from many investors.
 

Make Your Money Work For You!

When it comes to investing in East Coast Investments we are unlike most other. Instead of only having share in the company, we pay out an annual percentage of your invested money to you every month and then another percentage at end. Don't let your money rot away in your bank account... gaining under 1% a year. Put it to use with us and we will give you a residual income as well as a return on your investment! Make up to 15% annually on your investment with ECI!

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