INTRODUCTION TO BUSINESS FINANCE

Jun 18th, 2015
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When you start up in business you will need finance. Should you use your own money, borrow from family and friends, or go straight to the bank? What about invoice financing and factoring? Do you want a business angel? Understand the different forms of borrowing and choose the best financial option for your business.

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INTRODUCTION TO BUSINESS FINANCEWhen you start up in business you will need finance. Should you use your ownmoney, borrow from family and friends, or go straight to the bank? What aboutinvoice financing and factoring? Do you want a business angel? Understand thedifferent forms of borrowing and choose the best financial option for yourbusiness.DEFINITION OF BUSINESS FINANCERaising and managing of funds by business organizations. Such activities areusually the concern of senior managers, who must use financial forecasting todevelop a long-term plan for the firm. Shorter-term budgets are then devised tomeet the plan's goals. When a company plans to expand, it may rely on cashreserves, expected increases in sales, or bank loans and trade credits extended bysuppliers. Managers may also decide to raise long-term capital in the form ofeither debt (bonds) orequity (stock). The value of the company's stock is a constantconcern, and managers must decide whether to reinvest profits or to pay dividends.Other duties of financial managers include managing accounts and fixing theoptimum level of inventories. When deciding how to deploy corporate assets toincrease growth, financial managers must also consider the benefits of mergers andacquisitions, analyzing economies of scale and the ability of businesses tocomplement each other.CONCEPT OF BUSINESS FINANCEBusiness finance is the area of finance dealing with the sources of funding andthe capital structure of Business

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