Finance

Finance

Finance is defined as management of money which involves all activities associated with money such as:saving,borrowing,lending,investing and budgeting.Often when finance is mentioned the idea of business comes up because no business operations can operate efficiently without finance.There are three major types of finance namely,personal,corporate and public or government finance.Personal finance revolves around an individual and what he or she does with money while corporate finance involves an organization or a group of people.Public finance is the money run by the government on behalf of the people.

There are two major sources of finance:Equity finance and debt finance.Equity finance is generally the ordinary shares only invested in an organization by its shareholders.Debt finance is available in terms of debentures,loans and bonds.It is the common source of finance as from the borrowers point of view loans are cheap while to an investor loans are less risky and is paid back with interest gained.There are various types of loans raging from business loans,home loan,payday loans,student loans,personal loans,bridging loans,home loans,personal loans to car loans.When borrowing a loans you agree with terms given by the lender which include loan security and the rates of interest.

Loans being a major source of finance they have been made easier to access with the likes of payday loans which assist in case of shortage of immediate funds.Loans also finance education through students loans which help students cater for their living needs while acquiring higher education and payback once they start earning income.There is also hire purchase finance which is a form of loan issued to you by dealership for instance car loans where ownership of the car is transfered to you on the final payment.When in need of finances to grow you business or begin one you can access the personal loans which can be secured in form of a car or home while you payback the money.Loan security is a what the borrower offers to the lender which is claimed should they fail to repay.Loans are among the best fresh start source of finance and if acquired at lower interest rates can be used to grow businesses.