Meaning & use
cash call
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Meaning
nouncountablefinancebusiness
A formal demand for investors, partners or shareholders to pay in more money to a company or fund, often when it needs extra funds.
Grammar: Countable: make a cash call, receive a cash call.
Patterns
- make a cash call
- meet a cash call
- a cash call on someone
The energy partners received a cash call to cover higher drilling costs.
Investors in the property fund faced a cash call after repair bills increased.
The company issued a cash call to its shareholders to avoid default.
Word forms
| plural | cash calls |
|---|
Common combinations
- issue a cash call
- The operator issued a cash call to all joint venture partners.
- meet a cash call
- Several smaller investors struggled to meet the cash call.
- emergency cash call
- An emergency cash call was needed after the pipeline failure.
- cash call to shareholders
- The bank announced a cash call to shareholders to rebuild its reserves.
Synonyms and how they differ
- capital call
- Capital call is nearly identical and is the more common term in private equity, while cash call is common in oil and gas partnerships.
- rights issue
- A rights issue offers existing shareholders new shares to buy, whereas a cash call simply demands payment.
- funding request
- Funding request is a general phrase and lacks the obligation that a cash call carries.
Opposites
Word family
Commonly confused: cash call or cold call?
cash call vs cold call
A cold call is an unsolicited phone call to a possible customer, which has nothing to do with raising funds from partners.
Practice
After costs rose sharply, the project's operator sent every partner a ______ asking for their share of the extra funding.
Choose one answer.
A cash call is a formal request for more money. A cold call is an unsolicited sales call, which would not involve partners owing funds.
Make it your own
Write a sentence using “cash call”, then check it and compare it with the examples above.