Precipitated funds refer to funds that are idle in society and have not been accumulated for use. Precipitated funds can also refer to depreciation funds as a kind of "idle funds" outside the production process before the renewal period of fixed assets arrives.

Capital precipitation is a term commonly used in banks and companies. It refers to the fact that during the daily inflow and outflow of funds, there is always a certain amount of funds left in the account. The amount of this part of the funds is relatively stable, so it is called fund precipitation. , is a figurative expression.

Just like the sediment in the river, some have been washed away, and some have just been washed from the upper reaches, but part of the river bottom always remains as sediment at the bottom of the river. Take Alipay, for example. Since there is a certain time lag between the entry and exit of funds, there will always be a part of the money "left at the bottom of the river."

Extended information:

The advantages of enterprises using precipitation funds for financing:

(1) It allows enterprises to obtain long-term and stable sources of funds.

Because the service life of fixed assets is generally relatively long, ranging from three to four years to more than ten years. According to the prevailing corporate accounting standards, enterprises must accrue depreciation funds within the useful life of fixed assets. The long-term stability of depreciation funds enables enterprises to obtain long-term stable sources of funds.

(2) The amount of financing using precipitation funds is very high.

This is mainly determined by the high value of fixed assets. Especially for enterprises with a high proportion of fixed assets in total assets, the advantage of using precipitated funds to raise high amounts of financing is very obvious.

(3) It does not constitute a debt burden for the enterprise.

If corporate financing constitutes a debt burden, it will lead to an increase in the corporate asset-liability ratio. In this way, on the one hand, the company has to spend a large amount of funds to pay debt interest, on the other hand, it increases the business risk of the company. Therefore, one of its outstanding advantages is that precipitation capital financing does not constitute a corporate debt burden.

Baidu Encyclopedia-Precipitated Funds