Skip to main content

What is meant by "financing"?

Financing is an operational function that involves the provision and repayment of financial resources in connection with investments. The two most well-known financing options are externally financed debt financing (credit financing) and internally financed equity financing (self-financing).

Sensible financial planning helps to ensure that operational financing does not lead to a financial bottleneck, i.e. insufficient liquidity at any time. Another key pillar of operational financing is capital requirements planning. Capital budgeting deals with the theories and concepts of financing in a business context.

Further reference:

https://de.wikipedia.org/wiki/Finanzierung

The following video provides an initial introduction to the topic of financing:

Book tips