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Business Finance
Why do businesses need finance to operate?
Businesses need finance to fund their day-to-day operations, invest in assets, manage cash flow, support growth and expansion, meet financial obligations, and make strategic decisions.
What are the sources of finance available to businesses?
Sources of finance available to businesses include equity financing (issuing shares or equity investments), debt financing (loans, bonds, or credit facilities), retained earnings (profits reinvested in the business), grants or subsidies, leasing or hire purchase, trade credit, and crowdfunding or peer-to-peer lending. The choice of finance source depends on factors such as business needs, risk appetite, cost of capital, and ownership considerations.
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