Business Studies, asked by dragonworrier24891, 11 months ago

why we need to business finence

Answers

Answered by lucky1742
0
The day to day running of thebusiness also needs money. Depending on the type of business, it will need to finance the purchase of assets, materials and employing people. ... It may be some time before the business generates enough cash from sales to pay for these costs. Link to cash flow forecasting.
Answered by prashanth1551
0
businesses need finance. There are a number of funding sources used by organisations.



Finance refers to sources of money for a business. Firms need finance to:

Start up a business, eg pay for premises, new equipment and advertising.

Run the business, eg having enough cash to pay staff wages and suppliers on time.

Expand the business, eg having funds to pay for a new branch in a different city or country.

New businesses find it difficult to raise finance because they usually have just a few customers and many competitors. Lenders are put off by the risk that the start-up may fail. If that happens, the owners may be unable to repay borrowed money.
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