Difference between revisions of "Financing"
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| − | Financing is the process of providing funds for [[Business Activity|business activities]], making purchases or investing. Financial institutions such as banks are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals. The use of financing is vital in any economic system, as it allows companies to purchase products out of their immediate reach. Financing is key to Fundera's [[Business Model|business model]], for instance. Put differently, financing is a way to leverage the {[[Time Value of Money|time value of money (TVM)]] to put future expected money flows to use for projects started today. Financing also takes advantage of the fact that some will have a surplus of money that they wish to put to work to generate returns, while others demand money to undertake investment (also with the hope of generating returns), creating a market for money.<ref>What is the Meaning of Financing? [https://www.investopedia.com/terms/f/financing.asp Investopedia]</ref> | + | Financing is the [[process]] of providing funds for [[Business Activity|business activities]], making purchases or investing. Financial institutions such as banks are in the [[business]] of providing [[capital]] to businesses, consumers, and investors to help them achieve their [[goals]]. The use of financing is vital in any economic [[system]], as it allows companies to purchase products out of their immediate reach. Financing is key to Fundera's [[Business Model|business model]], for instance. Put differently, financing is a way to leverage the {[[Time Value of Money|time value of money (TVM)]] to put future expected money flows to use for projects started today. Financing also takes advantage of the fact that some will have a surplus of money that they wish to put to work to generate returns, while others [[demand]] money to undertake investment (also with the hope of generating returns), creating a [[market]] for money.<ref>What is the Meaning of Financing? [https://www.investopedia.com/terms/f/financing.asp Investopedia]</ref> |
Revision as of 15:54, 6 February 2021
Financing is the process of providing funds for business activities, making purchases or investing. Financial institutions such as banks are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals. The use of financing is vital in any economic system, as it allows companies to purchase products out of their immediate reach. Financing is key to Fundera's business model, for instance. Put differently, financing is a way to leverage the {time value of money (TVM) to put future expected money flows to use for projects started today. Financing also takes advantage of the fact that some will have a surplus of money that they wish to put to work to generate returns, while others demand money to undertake investment (also with the hope of generating returns), creating a market for money.[1]
- ↑ What is the Meaning of Financing? Investopedia