Definition: is a legal capability of an incorporated organization to get itself into debt. Typically, the company’s board of directors possesses the power to borrow funds on its behalf. However, in most cases, the company’s articles of association or bylaws strictly define the limits of when and up to what amount its management has the freedom to do so. Additionally, the level of the borrowing powers of a company depends on the amount and quality of its assets and how little in debt it already is.
In a Sentence:
As the price of Geniality’s assets has doubled in the last year, its borrowing powers have increased tenfold.
The existence of borrowing powers is essential for a company’s ability to evolve as a business, as they allow it to make investments in new equipment, technology, or other kinds of resources.
Since you’re a member of the board, you should encourage the rest of directors to use their borrowing powers to acquire additional funds so that we can deal with the current recession.
Synonyms and related words: borrowing, debt, borrowing capacity, powers of directors