Finance
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Introduction to Finance
This course will introduce you to frameworks and tools to measure value; both for corporate and personal assets. It will also help you in decision-making, again at both the corporate and personal levels.
What is Finance?
Before we begin, first let’s understand the origin of word “FINANCE.”
If we trace the origin of finance, there is evidence to prove that it is as old as human life on earth. The word finance was originally a French word. In the 18th century, it was adapted by English speaking communities to mean “the management of money.” Since then, it has found a permanent place in the English dictionary. Today, finance is not merely a word else has emerged into an academic discipline of greater significance. Finance is now organized as a branch of Economics.
Meaning of Finance
In simple words, Arrangement of funds is called finance. All organizations need finance for operating its different activities. So, we can say finance is just like blood for survival the business in changing economic environment. Fund, money, saving, cash, reserves and assets are the basics of finance. Finance word is very deep and in modern age, this word is also known Business Finance. To create equilibrium in business finance, we used different tools like financial analysis, financial planning, ratio analysis, cash flow analysis,fund flow analysis and working capital management analysis.
Types of Finance
Overdraft
A popular form of finance because it has the advantages of availability, convenience and flexibility. However, because
A popular form of finance because it has the advantages of availability, convenience and flexibility. However, because
interest rates are high, it should only be used for short-term requirements such as funding working
capital. Find out more about Overdraft.
Bank term loans
These provide fixed-term finance for longer periods. They are often secured by a charge against company
Bank term loans
These provide fixed-term finance for longer periods. They are often secured by a charge against company
assets and require you to sign legally binding covenants. Find out more about our Loans and Finance products
Asset-based finance
This describes financing an asset over its estimated life span using the asset as security for the loan.
Asset-based finance
This describes financing an asset over its estimated life span using the asset as security for the loan.
It can be structured so that the borrower has the sole right to use the asset and ownership transfers
to the borrower at the end of the loan period. Find out more about our Asset Finance products
Receivables Finance
This form of finance uses outstanding customer invoices as security. Find out more about Receivables Finance.
Invoice discounting
Similar to Receivables Finance, this is usually only offered to larger companies with strong credit
Receivables Finance
This form of finance uses outstanding customer invoices as security. Find out more about Receivables Finance.
Invoice discounting
Similar to Receivables Finance, this is usually only offered to larger companies with strong credit
management systems.
Angel funding
An individual invests in a company in return for shares in the company.
Venture capital
There are organisations that specialise in investing in unquoted companies which they believe will offer
Angel funding
An individual invests in a company in return for shares in the company.
Venture capital
There are organisations that specialise in investing in unquoted companies which they believe will offer
high returns to investors. There is strong competition for this type of finance and you should only consider
it after assessing all the alternatives.
Personal resources
These include personal savings, money borrowed from family and friends, or profits generated by the business.
Personal resources
These include personal savings, money borrowed from family and friends, or profits generated by the business.
