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The process or means of acquiring capital necessary to conduct a business activity. Two of the most common forms of financing are debt financing and equity financing. In debt financing, one borrows money, usually from an institution, with the promise to return the money with interest at some point in the future. This provides capital to the borrower and a profit to the lender. In equity financing, a company sells portions of ownership to those who are interested. Unlike debt financing, equity financing usually raises capital without incurring liabilities, but the risk exists that the company will not raise enough. An alternative to both debt financing and equity financing, especially for start-ups, is using money from personal savings to pay for activities.


Borrowing money to buy property. See leverage.

References in periodicals archive ?
Define / develop common and standardized processes for financing activities, including with a view to facilitating optimal digitization of financing activities, including assistance for the development of a digital bank.
As a result, the Company reassessed its position and is now classifying cash payments from its floor plan facility to its suppliers as financing activities in its consolidated statements of cash flows.
Safe Harbor Statements under The Private Securities Litigation Reform Act of 1995: This release contains certain forward-looking statements of the Company, including statements regarding anticipated cash from operations and the Company's ability to satisfy its annual debt service obligations, expectations for additional financing activities, and the anticipated timing of the Company's announcement of its full year fiscal 2005 operating results.
PEXCON intends to use proceeds from all financing activities to acquire working interests in preexisting revenue-generating properties with proven and audited reserves, which would provide the company revenue accruing in the second quarter and cash receipts in the third quarter.
Cash expenditures associated with financing activities of $8.
Cash expenditures associated with financing activities in 2004 are forecast at approximately $23.
These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors.
Profit from financing activities before provision for doubtful debts was up 5.
6) million and Cash Flows from Financing Activities of $114.
Before companies can appropriately report on their asset financing obligations, they must have visibility into and control of financing activities across the enterprise.