About This Chapter
Types of Financing - Chapter Summary
For a high-level overview of different types of financing, check out this collection of simple and informative finance lessons. Taught by a team of subject matter experts, the chapter breaks down several financing types and sources, as well as the financial planning process. Studying this chapter can help you:
- Identify different types of financing
- Outline the financial planning process
- Differentiate between short-term and long-term financing sources
- Recognize types of employee shares in a joint stock company
- Evaluate the advantages and disadvantages of equity financing
- Compare debt capital and equity capital
- Define financial terms, such as working capital, fixed assets and bank loans
- Explain the benefits of current banking technologies, including online banking services
Take the accompanying self-assessment quizzes to retain the financial concepts you've studied. Your course Dashboard allows you to quickly navigate to the lesson topics you want to review. If you need any extra help with the material, simply submit your questions to our instructors. Finally, we've made the chapter is available on any computer or mobile device so you can study wherever you are.
1. What Is Financing? - Definition & Types
People borrow money to purchase homes, cars, boats, or anything else they don't have the money for at the moment they want to make the purchase. In this lesson, learn what financing is, as well as different types of financing used every day.
2. The Financial Planning Process
Financial planning is essential for the success of any business. In this lesson, you'll learn about the financial planning process that businesses perform, including preparation of a master budget, capital budget and cash budget.
3. Sources of Short-Term Financing
Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.
4. Sources of Long-Term Financing
Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.
5. Types of Employee Shares in a Joint Stock Company
Joint stock companies can offer many incentives for owners/employees to directly participate in the direction of the company. One option is the ownership of stock in the company. This lesson will highlight types of employee shareholder ownership.
6. What Is Equity Financing? - Definition, Pros, Cons & Examples
Equity financing is as necessary to a business as air is to a person, but because it comes in several forms, it can easily be misunderstood. This article explains the various types of equity financing and explores their advantages and disadvantages for both companies and investors.
7. Debt Capital Vs Equity Capital
Sufficient capital is essential for starting, maintaining and growing a business. In this lesson, you'll learn how a corporation can raise capital through equity and debt. You'll also learn about the advantages and disadvantages of each approach.
8. What Is Working Capital? - Definition & Formula
This lesson explains what working capital is, how it is used in a business, and why businesses need working capital to stay functional. We'll also look at the formula used to calculate working capital.
9. What Are Fixed Assets? - Definition & Examples
A company may own different kinds of resources, among which are fixed assets. This lesson explains what fixed assets are, provides examples, and notes the importance of a business' industry in determining fixed assets.
10. What Is a Bank Loan?
Bank loans are common types of funding for many people who want to buy big ticket items, such as cars or homes. Read on to find out more on what a bank loan is, what it is commonly used for, and the different types of loans banks offer.
11. How Technology Makes Banking More Efficient
If you've ever heard the cliché 'banker's hours,' you know that banking traditionally has not been a fast and efficient process. In this lesson, you'll learn about how technology has improved the efficiency of banking for customers.
12. Online Banking Services: Definition & Types
After you read this lesson, you'll know just how useful online banking can be. You'll learn that you can do almost any kind of bank transaction from anywhere you have an Internet connection. You can even do banking from your smartphone.
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Other chapters within the ISC Commerce: Study Guide & Syllabus course
- Introduction to Indian Commercial Organization
- Forms of Indian Business Organizations
- Social Responsibility of Businesses
- Emerging Modes of Business
- Stock Exchange in India
- Types of Trade
- Understanding Foreign Trade
- Insurance & Risk Management Basics
- Business Environment Overview
- Management Theories & Functions
- Marketing in India
- ISC Commerce Flashcards