Business finance deals with the optimization of finance at the commercial level. A business requires investment or capital continuously based on various perspectives. There is short term, medium term and long term capital investments. The current liabilities are met by using the short and medium term capitals. The fixed cost assets such as land and machinery are acquired by using long-term capitals. Temporary loan and retained earnings are the sources of short and medium term capitals. Commercials banks, financial institutions and merchant banks are the sources of Long Term Capital. If a business represents the human body, then finance is the blood that gives it life. The capital invested by entrepreneurs isn’t always enough. Hence, the business person has to constantly search for sources to generate funds to keep the business alive.
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