What Is Business Finance?

Finance is the life blood of business. It flows from sale of goods and services. It also flows out for meeting various types of expenditure. Business finance is defined by the Dalton as those activities which have to do with the provision and management of funds for satisfactory conduct of a business. The business finance mainly covers tree major objectives. First of all it is to obtain an adequate supply of capital for the needs of the business. Secondly it is to converse and increase capital through better management. Third one is to make profit from the use of funds which is an overall objective of a business enterprise.

Before the advent of industrial revolution finance was not of much importance. The methods of production were very simple. For example the artisan used to work in the open or in a small hut. He had simple tools mostly made by it. Labor at that time was more important than capital and finance did not pose any problem.  Since the beginning of industrial revolution, there has been a remarkable growth in production. The output per worker in every in field has increased many times. The methods of production are complex and roundabout. The time lag between production and consumption is long.

Finance is the base of the business. It is require to purchase assets and for the flow of economic activities. It is in fact the life blood and nerve center of industrial and commercial enterprises.
Business finance may be defined as the provision of money at the time when it is needed by a business or we can define business finance as administrative area or set of administrative function in an organization which relate arrangement of the cash and credit so that organization may have the means to carry out the objectives as satisfactorily as possible.  In other words the business finance is that business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objective of the business enterprise. The business finance is mainly developed around three major objectives.
1. It is concerned with the alternative ways by which adequate supply of the money can be raised.
2. It deals with the financial aspects of getting land, building, machinery, payment to workers an\d marketing obligations of the business.
3. It seeks to make profit from the use of capital which is an overall objective of an enterprise.