DEFINITION of 'Financing'

The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.


There is a large variety of financing techniques that businesses and consumers can use to receive financing; these techniques range from IPOs to bank loans. The use of financing is vital in any economic system as it allows consumers to purchase products out of their immediate reach, like houses, and businesses to finance large investment projects.

  1. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  2. Equity Financing

    The act of raising money for company activities by selling common ...
  3. Inventory Financing

    A line of credit or short-term loan made to a company so it can ...
  4. Debt Financing

    When a firm raises money for working capital or capital expenditures ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Bridge Loan

    A short-term loan that is used until a person or company secures ...
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