Financing

• Refers to the act of obtaining funds to ensure that businesses can operate effectively in pursuit of the organisation's objectives
• Business acquires funding from financial institutions/investors to expand/ maintain operations
• Loan financing is available from financial institutions and must be repaid with interest over a certain period
• Equity funding is available from private investors in return for a percentage of ownership of the business
• Personal debt funding refers to the ability of an individual to finance business activities through credit card facilities/ retirement funds/ home loans