How Do You Define The Term "Business Finance"?

[Good-Guy]

Business has many specific kinds of branches. When it comes to business, we have many sub-categories such as marketing, management, human resource, etc. One of the most important aspect of any business is finance. We can say that finance is the basic skeleton of any kind of business. This is because we need capital to make our business successful. I think finance is just like root of business. Since any plant cannot grow without strong roots, similarly a business cannot be settled or built without appropriate amount of funds. I am sure that finance is a very huge and broad term within itself as it actually involves, funding, capital management, credits and debts, fund recovery, asset management, etc.

However, when it comes to the term "Financing", I would say that the term means providing a sufficient amount of capital that is required to carry out business operation in the best way possible. For example, if you want to do marketing or carry out manufacturing of your products, you may need to fund your business in order to carry out business activities. I think each and every person might have different definitions of the term "Finance" as this field is huge. So, what do you understand when you hear the term "Finance"? What are your thoughts about it?

 

[Mellorando]

Business finance refers to funds availed by business owners to meet their needs that may include commencing a business, obtaining top-up funds to finance business operations, obtaining finance to purchase capital assets for the business, or to deal with a sudden cash crunch faced by the business. Business finance is also the process of managing an organization's money. The importance of finance in business is in the ability to ensure that a business operates without any financial hiccups like running short of cash, and at the same time making sure, that funds are secure and well invested for long-term gains.
When an entrepreneur takes a decision to start business, the need of fund arises in order to meet the expenses of establishment of business, finance is required for purchasing fixed and current assets for day-to-day operations, purchase of raw material, to pay salaries etc. Financial decisions affect both the profitability and the risk of a firm’s operations. An increase in cash holdings, for instance, reduces risk; but, because cash is not an earning asset, converting other types of assets to cash reduces the firm’s profitability. Similarly, the use of additional debt can raise the profitability of a firm (because it is expanding its business with borrowed money), but more debt means more risk. Striking a balancebetween risk and profitability that will maintain the long-term value of a firm’s securities is the task of finance.

 

[Kingsley]

I will define business finance as all methods that are employed to make plans and design or formulate ways to generate and manage funds In other to run a business effectively and efficiently. Business finance covers all areas that cut across project evaluation, and project selection and project execution. When we look at project evaluation we will take into consideration all those areas that touches the viability of a particular project, here enough analysis will be carried out to ascertain whether the business will be viable or not in a case where after much calculation had been carried out and it was discovered that the project will not be viable such project will either be abandoned or re-evaluated.

Then if the project is found to the viable the project will proceed to the next stage which will be the selection stage, the selection stage happens as a result of thr fact that there are somany other viable project, hence the most viable will be selected looking at financial the constraints and other factors that must her been put into consideration during the evaluation stage.

Then when the selection stage has been fully completed we move to the execution stage where the project will be carried out.

 

[Deleted member 28127]

Mostly business finance means the fiat currency and checks received by enterprises as sometimes you can get check dated after 1 to 3 months to receive your money depending on the convention with the client.

 

[Jasz]

Business finance refers to the ways that companies and other organizations obtain the financial resources they need to operate on a daily basis. Many organizations, no matter how much money they have available, wonder how they can improve their business' efficiency by using business finance.


Business finance is the term used to describe the amount of money that is needed to operate a business. The money is needed to cover all of the things that will help your business function successfully. These things include salaries for employees, utilities, rent, insurance, and product costs among other things. You can't run your business without capital!


Managers in all types of businesses need to be familiar with finance concepts and skill in business financial management tools in order to survive and thrive.





It can also be said to be a field that is concerned with the financial aspect of a business. This can include resource allocation, capital budgeting and risk management. It also covers raising of capital either through venture capitalists or through employees. It further deals with determination of costs and revenues, which are derived from the production function or firm's cost-minimization decisions. It is important for business to manage their finances properly and effectively.

 

[Deleted member 28127]

Even donations are involved in business finance sometimes company pays fee from his customers donations for the maintain and durability of company even it is considered as free money given.

 

[PICKFORD]

From my own point of view business finance refers to ways in which a particular company, business Enterprise, or commerical organisation get revenue capital or monetary assistance to finance it daily activities there today. It is said that a business without good finance does not last long and is prone to fell or go bankrupt. business finance can come from different sources some business or newly-started infant industries and companies seek financial support from Bank through the help of loans, overdrafts etc and sometimes the government can also render help to newly-started industries or two enterpreneur who have great and standard business ideas, yes the government give loans in form of grants do this once to implement their business ideas and research some of the things that company used its finance to handle her buying of stock, pain of salaries and wages to staff workers or employees, they also use finance to renovate capital structures as well as the building in which financial activities like buying and selling take place, companies industries in used finance to pay dept loans two people they are on, finance is also useful in a company for renovations and innovations of computerized environment and technology. So you see business finance is probably everything guiding the foundation of a business or company.

 

[Deleted member 13140]

Well using the name I would just say business finance is the capital available for a business or atleast money a business have generated since there got started..