The finance terms play an important role in the present market driven world. Starting from the process of production to distribution, the entrepreneur as well as the company needs finance.
The business enterprises as well as firms need finance to meet all of their short term, medium term and long term needs.
- The long-term financial need is generally to make investment on the fixed assets such as plants, machines and buildings.
- The short term financial needs is generally for working capital management
- The medium term financial needs generally for a period of 1 year to 5 years.
Finance Sources
The sources of finance can be defined as to the requirement types. They are of following types:
- Long-term Sources of Finance
- Medium-term sources of Finance
- Short-term sources of Finance
Managing Finance
Managing finance is an important area of concern in business activities. Financial reviews helps in managing the financial strength of the business