Borrowings

Borrowings refer to the amounts of money or resources that are acquired from an external source, typically with the intention of repaying or returning the equivalent in the future. This term is often used in financial contexts where individuals or entities take loans from banks, financial institutions, or other lenders to meet various personal or business needs. borrowings can include cash loans, lines of credit, mortgages, and other forms of debt.

Borrowings meaning with examples

• When planning for a major home renovation, the couple decided to secure some borrowings from their bank to ensure they had adequate funds available. They evaluated different loan options and interest rates, ultimately choosing a mortgage that would not only cover the renovation but also fit comfortably within their budget over time.
• The company's financial report highlighted a significant increase in its borrowings last year, reflecting their aggressive expansion strategy. By taking on additional debt, the company aimed to invest in new technologies and increase their market share, although this also raised concerns among investors about long-term financial stability.
• Educational borrowings have become a common practice among college students seeking funding for their tuition and living expenses. Many students rely on federal loans, private loans, or lines of credit to afford higher education, which can lead to significant debt upon graduation if not managed carefully.
• After assessing her financial situation, Emily decided that taking borrowings to fund her small business was a necessary step toward growth. By applying for a small business loan, she hoped to expand her inventory and reach a wider customer base, all while keeping her repayment plan within a controllable range.