What is Finance- Definition & Meaning

Financing is the process of asking a bank, credit union or finance company or other person for a loan if you promise to repay the money in the future. This is the common language of money.

Indeed, finance is the science that describes income and behavior or financial matters, and particularly banking and investment management.

It's very difficult! Just to explain financing... if you buy a car, if you don't have enough money to buy the car, you go to the bank to borrow money for the car. If you agree to pay interest to the bank, the bank will lend the money. Now there is no problem to buy your car.

In other words, financing means borrowing money with a promise to repay the money within a certain period of time either in installments or with interest.

Now let's wait to find the definition of money according to various authors...

LJ Gitman says: "Finance can be defined as the art and science of money management. Finance deals with the processes, institutions, markets and instruments involved in the exchange of money between people, businesses and governments."

EW Walker says: "The activities related to financial planning, coordination, control and execution of a business enterprise are called finance."

According to Schall and Halley , “Economics is the body of information, policy, and theory that deals with the acquisition and use of money by individuals, businesses, and governments.

After analyzing the above discussion and the definition of the authors, we can define finance... Finance is short, medium and long term fundraising financial plan for individuals, men businesses, financial institutions , social organizations and governments. . A practical resource to ensure proper investments, reserves, coordination and control in accordance with this financial plan.

Indeed, finance can be properly defined as the art and science of money management.