Business Finance

Working Capital

Introduction Working capital refers to the funds available for the day-to-day operations of a business. It is the difference between current assets (like cash, inventory, receivables) and current liabilities (like payables and short-term loans). Importance Ensures smooth functioning of daily activities. Helps in purchasing raw materials, paying wages, and covering short-term expenses. A sign of […]

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What is lease financing?

Introduction Lease financing is a popular method used by businesses to obtain the use of assets such as machinery, equipment, buildings, or vehicles without owning them. It is a financial arrangement where one party (the lessor) allows another party (the lessee) to use an asset for a specific period in exchange for regular payments. This

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Describe the financing through Venture Capital by explaining its merits and limitations.

Introduction Venture capital is a type of financing that investors provide to startups and small businesses that are believed to have long-term growth potential. This funding is crucial for businesses that do not have access to traditional sources of finance such as bank loans, due to the high risk involved. Venture capital not only provides

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