financing

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Related to Financing Activities: Investing Activities

Financing

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.

financing

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.