Most businesses distinguish between working capital, equity capital, and debt capital, although they overlap. Working capital is the money needed to meet the day-to-day operation of the business and pay its obligations promptly. Equity capital is raised by issuing shares in the company, publicly or privately, and is used to fund the expansion of the business. Debt capital is borrowed money. On the balance sheet, the amount borrowed appears as a capital asset while the amount owed appears as a liability.