What is the financing cost?

Could you please elaborate on the concept of financing cost? Is it a specific fee associated with obtaining financing, such as interest rates on loans or credit card balances? Or does it encompass a broader range of costs, like administrative fees, late payment penalties, or the opportunity cost of using funds that could have been invested elsewhere? Understanding the financing cost is crucial for businesses and individuals alike, as it directly impacts their financial health and decision-making processes. So, could you provide a more comprehensive definition and explain how it impacts financial planning and management?