According to the Oxford Dictionary, the term ‘finance’ refers to ‘money management. Webster’s ninth new collegiate dictionary defines money as “the science of study.” This includes fund management ‘and a system of fund management for Money laundering, lending, investing, and provisioning of Banking facilities.
According to the Wheeler, “Business finance is that business activity which concerns with the acquisition and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise”.
According to the Guthumann and Dougall, “Business finance can broadly be defined as the activity concerned with planning, raising, controlling, administering of the funds used in the business”.
In the words of Parhter and Wert, “Business finance deals primarily with raising, administering and disbursing funds by privately owned business units operating in non-financial fields of industry”.
Corporate finance is related to budget, financial forecast, cash Management, credit administration, investment analysis, and fundraising Adopt modern technology for business concerns and business concerns and Applications suitable for the global environment.
Types of finance:
The term finance refers to the management of money and involves managing funds through borrowing, investing, borrowing, saving, budgeting, and planning. Money is how you manage your funds in addition to raising the necessary funds. The two main financial types are equity finance and debt finance.
Equity Finance: Equity finance is a classic way to raise capital for a business by issuing or offering shares of a company. This is one of the major differences between debt finance and equity finance. This money is usually applied to seed funds for start-ups and new businesses. Startups often use this money for seed financing while established businesses often offer shares to raise capital for business expansion. Every person who owns shares has partial ownership of the company and can benefit from the shares if the company does well.
Debt Finance: Generally, loans required for a period of one to one hundred and eighty days are called short-term loan financing. These loans are borrowed to meet shortfalls and temporary or occasional needs. The principal amount must be repaid according to a pre-arranged interest rate and can be classified into short-term, medium-term, and long-term loans. Examples of debt financing include trade credit, capital loans, credit cards, small business loans, and more. Car loans or home loans are two popular examples of long-term financing. Bond/debenture issue, preference share issue, equity share issue, long-term loan from government, financial services institution or investment bank, venture funding from investors, and other examples of long-term loan financing.
