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This is financial adviser Patrick Munro talking about what is cost of capital. Capital is
important life blood to every business. It's money that you have to do the business that
you need to do. Many times you don't have that on hand so you have to borrow it from
a financial institution. And they charge you interest for that particular service. This
is called your cost of capital. And as long as your cost of capital is smaller than your
potential gain for using that capital out in the market place then you'll make what's
called a profit and you will stay in business. It's important to do so. Handle your money
with great respect. Make sure that you keep your credit ratings strong and in challenging
financial times this is a difficult thing to do but it can be done with focus and communication
between you and your lenders. That's a very, very key issue. This is Patrick Munro talking
about how to maintain your capital lines as a business person.