The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges involved in the borrowing of money to build or purchase assets.
The total expenses associated with securing finance for a project or business arrangement. i.e. Interest payments, financing fee charged by intermediary financial institution, fees or salaries of any personnel required to complete the financing process.This cost includes interest on loans, overdraft charges etc.
References
Financing cost Wikipedia(Text) CC BY-SA