Financing is the process of providing funds and cash in hand  for all business activities like making purchases, making debtors and investment etc. Financial institutions like banks, gives finance of providing capital to businesses, consumers, and investors.

Meaning of Business Finance

Business Finance means the credit and inflow of funds generated in the business by the employees. Finance requirements are to purchase assets, goods or stock, raw materials. Finance is uses for acquisition of funds which is called capital funds for meeting financial needs of the company.

For the success of any business requires a good amount of money which is known as business finance. The fundamental necessities of business would be to buy a plant, or it could be to buy raw materials, development of a business. The money related necessities of a business can be classified as follows:

Fixed Capital Requirement: 
Money is only requirement of buying any fixed assets like land, building, plant and machinery. 
Working Capital Requirement: 
Working Capital means current assets over current liability.  Money is required for the purchase of raw materials, paid salaries, wages, rent, and taxes. 
Diversification: 
It means producing more than one product and services. A company needs more funds to diversify its activities to become MNC like Tata.
Technology upgrading: 
Finances are needed to adopt the latest technology. Example- up gradation of software and the latest computers and other equipment.

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