There is some basic difference between capital investment and working capital. Thus investors must understand that when there is an increase made by him in their working capital then that person is not making any capital investment. The difference between the two often seems confusing to many. There is a huge difference between financial capital and the capital investment like in Ondeck capital. A difference also exists between human and financial capital. Human capital includes the human labor involved in a business while financial capital is the fund that is necessary for the proper growth of a business. The financial capital actually makes an investment in the capital goods and human capital builds capital goods and designs them as well.
The labor productivity increases with the betterment of capital goods. This means growth in capital goods is directly proportional to the better productivity of labor. Presence of a better quality of capital good can make the production, any individual or business much more effective in very limited time and increase in efficiency will, in turn, affect the economy in a better way just like in case of ondeck canada .
An organization cannot feel the difference of increase in the revenue at the very moment with the improvement in capital goods. There must be some good amount of funds in the backhand to make a company or business viable and in turn, this will increase the capital goods. The funds must be there until and unless a new set of revenue is generated from the present capital goods. With the increase in capital investment the research and development team also gets more capital for creating growth in the structure and the company. This, in turn, increases the productivity and working capability of the labor. The improvement in the labor will increase the number of the product as well as the quality. This process will lead to the growth of the economy.