Business finance is that business activity which is concerned with the acquisition & conservation if capital funds in meeting financial needs & overall objectives of business enterprises. Therefore Business finance basically refers to money & credit employed in various businesses. Business finance involves procurement & utilisation of funds to enable businesses to carry on their functions & operations effectively. So when we are talking of business finance we are including:
• All types of funds used in businesses.
• Needed in all types of organisations; large or small; manufacturing or service.
• The amount needed varies from one business to the other depending upon size, nature & time of the business.
• It involves estimation of the amount needed for the purpose of investment from various sources.
Facts, Features and Functions of Business Finance:
The features of business finance have already been mentioned above. As far as the functions of business finance are concerned they are many & varied in nature. Business finance by itself may not perform any function, but it definitely helps other wings of a business perform their tasks smoothly. In fact that is the biggest task performed by business finance. They help other business processes run smoothly.