Definition of 'Capital Recovery'
1. The earning back of the initial funds put into an investment. Capital recovery must occur before a company can earn a profit on its investment.
2. A euphemism for debt collection. Capital recovery companies obtain overdue payments from individuals and businesses that have not paid their bills. Upon obtaining payment and remitting it to the company to which it is owed, the capital recovery company earns a fee for its services.
3. A company's recouping of the money it has invested in machinery and equipment through asset disposition and liquidation.
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