Cash injection
A cash injection refers to an infusion of capital, typically in the form of cash, into a business. This capital can come from various sources, such as investors, lenders, or the business owner themselves.
Cash injections can serve a variety of purposes, including:
- Funding growth initiatives – Expanding operations, entering new markets, or developing new products.
- Improving working capital – Covering short-term operational expenses or managing cash flow gaps.
- Debt repayment – Reducing existing debt obligations or restructuring loans.
- Restructuring or turnaround situations – Providing financial resources to navigate challenging periods.
Examples – A venture capital firm investing in a startup, a business taking out a loan for expansion, or an owner injecting personal funds into their company.